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Trump’s Former Pro-Bitcoin Chief of Staff Now Runs a Hedge Fund

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Former White House chief of staff under U.S. President Donald Trump Mick Mulvaney is running a hedge fund. Since 2014 Mulvaney has been recognized as a pro-Bitcoin (BTC) official, encouraging practical regulation of cryptocurrencies.

The new fund called Exegis Capital was announced during a podcast with S&P Global Market Intelligence. Mulvaney would collaborate with former Sterling Capital Management portfolio manager Andrew Wessel.

Could Mulvaney’s pro-Bitcoin stance have any effect?

At the 2014 “Bitcoin Demo Day” conference, Mulvaney said he would like to see the government take its time in regulating Bitcoin. 

He said the top cryptocurrency has the potential to become a medium of trade and a means of payment. Mulvaney said at the time:

“My interest in it is to just try and make sure that government doesn’t act too soon in such a fashion that curbs the potential for Bitcoin. Because I see potential for Bitcoin as a medium of trade and as a transactional tool, and I’d hate to see the government make decisions early that sort of retard its growth.”

Since then, he has continuously encouraged the government to efficiently regulate the cryptocurrency market. When Mulvaney was initially appointed as the White House chief of staff, the sentiment among cryptocurrency industry executives was generally positive.

It remains to be seen whether Mulvaney’s enthusiastic stance towards Bitcoin would lead the fund to get involved in the cryptocurrency market.

In recent weeks, the Bitcoin market has seen a spike in the inflow of institutions. Most recently, Fidelity Investments filed an application with the U.S. Securities and Exchange Commission to operate a Bitcoin fund.

As Cointelegraph reported on Aug. 26, Fidelity Investments President Peter Jubber filed the Form D for a Bitcoin index product with a $100,000 minimum investment.

Previously, Fidelity said in a paper entitled “Bitcoin Investment Thesis: An Aspirational Store of Value” that Bitcoin has the properties of a store of value. The paper reads:

“Many investors consider Bitcoin to be an aspirational store of value in that it has the properties of a store of value but has yet to be widely accepted as such.”

The growing institutional activity in the Bitcoin market naturally raises the speculation on whether more hedge funds would enter the cryptocurrency space.

Fund unlikely to get into cryptocurrencies in the near term

In the near term, Mulvaney is unlikely to actively consider Bitcoin and cryptocurrencies due to his ties with the administration.

While Mulvaney is no longer the White House chief of staff, he still remains a special envoy. Given the Trump administration’s negative stance towards Bitcoin, the probability that Exegis Capital would seek exposure to cryptocurrencies remains low, at least for the foreseeable future.





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3 reasons why Bitcoin price has not been able to rally back above $40K

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The ongoing story for the past couple of months in the cryptocurrency market has been confusion on whether Bitcoin (BTC) is destined for another leg down or is finally ready to break out toward new highs.

Bitcoin’s price history and data from previous corrections suggest that the current struggles for the top cryptocurrency could persist for a little bit longer due to the strengthening dollar, the possibility of decreasing economic stimulus and a slew of technical factors connected to Bitcoin’s price action.

A strong dollar threatens Bitcoin’s recovery

According to data from Delphi Digital, one of the biggest factors placing strain on risk assets around the globe is the strengthening U.S. dollar which appears to be attempting a trend reversal after falling below 90 in late May.

DXY 1-day chart. Source: TradingView

Rising dollar strength put a halt to the year-long uptrend in the 10-year US Treasury yield which is also a reflection that the economic expansions seen in the first half of 2021 are beginning to lose steam and there is a threat that a new wave of Covid-19 infections threatening the global economic recovery.

Fractals and the Death Cross suggest the correction is not over yet

The short-term outlook for Bitcoin remains bearish as previous instances of the “Death Cross,” which appeared on BTC’s chart in late June, have been followed by a corrective period that can last for nearly a year.

Bearish crossover of the 50 day and 200-day MA. Source: Delphi Digital

According to the analysts at Delphi Digital, the 12-month moving average is being tested as support, and a dip below this level would signal further downside for BTC price.

Bitcoin price testing the12-month moving average. Source: Delphi Digital

The 12-month moving average has been a key support level for Bitcoin historically, so how the price performs near this level could dictate whether the current uptrend remains intact.

Related: El Salvadorians take to the streets to protest Bitcoin law

Overall, caution is warranted for traders because low volumes have historically led to higher volatility when fewer open bids can lead to rapid price fluctuations.

As explained by Kevin Kelly, a certified financial analyst at Delphi Digital, “the short-term outlook turns quite a bit more bearish if and when we break those key levels” near $30,000.

Kelly said:

“I don’t necessarily think that we will see as nearly as significant of a drawdown as we did in say, post-December 2017, early 2018, and into the end of that year. But I do think, just given the structure of the market, that we could potentially be in for a bit more short-term volatility and potentially some more headwinds here, in the near term.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.