Bitcoin before the Coronavirus was somewhat stable. It was hovering around $9k USD in February. With the mandates set forth with the Coronavirus and the stock market crashing so did Bitcoin as well.
As Bitcoin continued to lose its value it led to a ripple effect for some crypto hedge fund agencies. In particular Adaptive Capital took some massive hits, so much so that they have been forced to shut up shop.
“Like many institutional investors, Adaptive Capital likely had the longer Bitcoin’s price action on longer timeframes in mind. Proof of this comes from an August 2019 tweet from Murad Mahmudov, former Goldman Sachs analyst and the Chief Investment Officer at Adaptive Capital. “
Bitmex also reported that there was a DDOS attack that took place that led to issues. So the bottom-line is, what truly caused Adaptive to go out of business?
Bitmex reported the following:
“We have identified the root cause of two DDoS attacks at 02:16 UTC and 12:56 UTC, 13 March 2020. For a full account of what happened and how we are responding.”
In any event, another Crypto hedge fund company has now gone belly up, so we’ll see what happens next.
For more in depth coverage of this, please read the full article at Cointelegraph.