Yesterday morning I wrote about a respectable stock investor who couldn't find a fundamental analysis to explain the reason for the rise of Bitcoin. I would like to add a few interesting examples from the world of news to my previous post.
Part 1. $20 billion.
Bill Hwan had $ 20 billion, and then he lost it all in two days. But before he lost all of his $20 billion, Bill Hwan was the greatest trader you've never heard of.
Since 2013, he has wagered more than $200 million from his closed-end hedge fund on good luck by making a successful leveraged trade on a stock of one company. And he won. He could stop and cash everything out on full legal basis. But he didn't. And soon, in just 2 days, the billionaire disappeared, turning into a debtor.
The total capital that Hwang managed was over $100 billion. What was Hwang doing? He traded not only with the shoulder but also with borrowed money. Together with Hwan, shares of many of his creditors flew into the abyss, including Credit Suisse Group AG, which lost $ 4.7 billion. And this is just the tip of the iceberg.
Now Hwang owns a suburban home in New Jersey and drives a Hyundai SUV.
The full story of his rise and fall can be read on Bloomberg.Part 2. $40 million.
One trader bet $40 million that the Cboe Volatility Index (often referred to as the Wall Street fear indicator) will break above 25 and rise to 40 by mid-July. Translating the complex calculations of Trade Alert into meaning, this trader believes that the American stock market will collapse no later than July 25. Otherwise, he will lose his $40 million.
Part 3. 4%.
Minneapolis Fed President Neil Kashkari said Thursday that he would not have a panic attack if inflation rises to 4% per annum. Kashkari said he supports the Fed's new policy structure and said that this means the Fed will not “cut recovery payments” as it has in the past.
And then he added: “We were always wrong. And it was the worker who paid the price”.
Did you want a fundamental analysis of the reason for Bitcoin’s rise? Here it is, read above.
