Bloomberg: rise of Bitcoin price as result of algorithmic trading
The recent price increase on the cryptocurrency market may be related to algorithmic trade says Bloomberg. Special software (robots) is used for algorithmic trades. This software closes deals using own algorithms. This trade method became popular during the last months.
In accordance with the Crypto Fund Research data, since September 2018 a dozen of algorithmic and quantum funds were launched. Their volume makes more than 40% of cryptocurrency hedge funds, created for the given period.
While crypto hedge funds lost around 72% during the last year’s price drop, some algorithmic funds reported that they gained 3%-10% a month in 2018.