Nassim Taleb Ends Bet Against Bitcoin: “No Reason, I’ll Think About It Later”

a few years ago, Nassim Taleb wrote the foreword to the book The Bitcoin Standard, become a big name in defending the largest and oldest cryptocurrency on the market. However, the author and analyst have turned against the digital currency in recent years, calling it a scam again and again.

Already this Monday (17), Taleb announced on his social networks that he was ending his bet against Bitcoin. But even he doesn’t seem to know the exact reason that led him to this decision.

While it is unclear when the author opened this Bitcoin short, Taleb explainedin January of this year, which was positioned against bitcoin for a few months.

“Breaking my rule about shorting #BTC (too volatile, risky to sell naked); A few months ago I opened a pair of shorts.” stated Nassim Taleb in January of this year.

In October last year, Taleb claimed that shorting Bitcoin was more irrational than buying it. After all, it could easily be liquidated by a bullish spike.

Taleb closes short position in Bitcoin

This Monday (17) the author of the famous books Antifragile and The Logic of the Black Swan returned to talk about his Bitcoin operation. According to Nassim Taleb, even he does not know the reason for closing such an operation.

“I closed my shorts in #BTC. No reason. I’ll think about that later.”

[Closed my #BTC short. No reason. Will think abt it later]

— Nassim Nicholas Taleb (@nntaleb) October 17, 2022

However, we can highlight some points that may have influenced Taleb’s decision. The first of these is strong support in the $19,000 region, which will keep Bitcoin afloat for four months as all markets grapple with Fed rate hikes.

Another circumstance could be that Bitcoin is less volatile than the largest stocks in the world. One of the reasons Taleb switched teams and became a Bitcoin critic was the high volatility of the cryptocurrency.

“A currency is never expected to be more volatile than what you buy and sell with it”Taleb stated in the past when he stated that Bitcoin had failed.

Finally, it is hard to imagine that the author will soon return to defending Bitcoin. After all, in addition to Bitcoin not being that stable, Taleb last month claimed Bitcoin was a tumor created by monetary easing over the decades.

However, nothing prevents the author from defending Bitcoin again if it proves its worth at high US interest rates in the coming years.

In any case, we are waiting for your arguments about closing your Bitcoin short position to better understand your current position.