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Bitcoin has been enjoying its longest positive run since September. BTC has added 20% to its price since Friday, dragging much of the market encrypted with it. The peak crypto is currently valued at £ 3,031 ($ 3,827) at 13:00 GMT on Wednesday, December 19th, according to CoinDesk.com.
December 2017 saw the peak of Bitcoin, with a value close to $ 20,000.
It was at this time that the influential economist Mark Dow decided to make a short bitcoin, which consisted of making money in a falling market.
The short consists of borrowing, then selling the currency immediately, in the belief that it is possible to buy them later at a lower price, pocketing the difference.
But a year later, and after a disastrous drop of 80% from its all-time high, Mr. Dow – a former economist of the International Monetary Fund – concluded the trade.
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Mr Dow said, "I'm finished, I do not want to try to drive this thing to zero.
"I do not want to try to squeeze more from the lemon.
"I do not want to think about it, it seemed like the right time."
Mark Dow bet on Bitcoin losing value immediately after reaching a record of $ 19.511.
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Mr Dow believes the fall is due to a misunderstanding about bitcoin and its underlying blockchain infrastructure.
"They just saw that it was going up and wanted a piece of it," he said.
People's imagination can go further when they are not tied to facts, when they do not understand the problem. "
"He allowed the bubble to be much bigger and much more violent.
"I saw the psychological signs of it and there was a point where it seemed like the fever was breaking."
The core cryptocurrency market was hit by a series of regulatory setbacks and losses only increased by the November bitcoin cash gap.
"People buy these resources because they believe in fiction and look at asset prices to see if the narrative weakens or changes," Dow said.
"It's not easy – you could be wrong, but it's the sign you're looking for.
"But it does not mean you will do it well."
Mati Greenspan, eToro Senior Market Analyst, believes the recent impressive push of the ground cryptos is due to widespread short coverage.
Greenspan said: "People are trying to reduce their exposure and close high-risk sales positions before the holidays and this is creating upward pressure on market prices, which will ultimately result in a rally."
