Crypto News
8 Jul 2021

The Man Who Broke the British Pound is now invested in Bitcoin


“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.” – George Soros, American billionaire, investor and philanthropist. 

When the likes of George Soros and Steve Cohen are entering the trillion dollar plus crypto economy, it definitely is getting hot as hell. 

The recent slip in crypto prices has opened the doors for a fresh wave of institutional investments. Two notable hedge funds, Point72 and Soros Fund, are eyeing an entry. 

Steve Cohen, American hedge-fund billionaire and owner of the baseball team New York Mets, is looking to hire ‘Head of Cryptocurrencies’ to manage Point72’s crypto investments. Besides Point72, the head of Soros’ Fund has given the ‘green light to actively trade bitcoin.’  

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Breaking Bank of England: How did George Soros do it?

On September 16, 1992, George Soros profited $1.5 billion in a single day by betting against the Great British Pound (GBP). 

Marked as Black Wednesday, Soros had anticipated the fateful day when GBP would collapse. 

Rising inflation and fall in the value of GBP forced Britain out of European Exchange Rate Mechanism (ERM). While it was a tough decision to make, the pound came back stronger as inflation subsided and the British economy strengthened. 

A day before Black Wednesday, Soros started selling large amounts of GBP on the market that led to the eventual collapse. His role in ‘enforcing’ the prevalent market dynamics by shorting the currency came to be popularly referred to as ‘Breaking the Bank of England’

Are institutional investors a good sign for the markets? 

In the short term, large institutional investments can provide the necessary momentum needed for an upward trend. 

However, as seen in 2020, big money can surge and plunge crypto prices overnight. The extreme volatility along with market dependence on institutional players can put the individual investor at risk. 

Irrespective of the risks involved, traditional speculators like George Soros entering the market is a sign of bullishness, which is Indicative of the greater bitcoin acceptance as an asset class. 

Don’t be surprised as more and more hedge fund managers test the bitcoin waters. 

P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.



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