According to Coinmarketcap, Bitcoin (BTC) has lost 7% over the past day, which came as a surprise to many analysts. Let's consider three possible reasons why the main cryptocurrency is now testing new levels of support.
CME Futures
Although it is difficult to determine the unambiguous reason for the price drop, most analysts pay attention to the Chicago Mercantile Exchange (CME). Bitcoin CME Futures Expire On This Friday. Dave Balter, CEO of Flipside Crypto, said in a comment to Bloomberg :
“It looks like this sell-off was related to futures settled on Friday.”
Given the relatively low trading volumes, this sale has had a strong impact on the market. Arca CEO Jeff Dorman said:
“This is the week before Labor Day. Half of the cryptocurrency market went to Burning Man, and the other half sits quietly and does nothing. Volumes are low, and now very little is needed to influence the market. ”
Bakkt launch
On August 16, the Bakkt cryptocurrency platform, supported by Intercontinental Exchange, announced the full launch of the platform, which is scheduled for September 23. Yesterday, the company announced that on September 6 it will open the reception of bitcoin deposits for its deliverable futures.
This can be regarded as a bullish signal for the bitcoin market, but there is one catch. Bakkt is aimed at institutional investors, and naturally, they will try to enter the market at the lowest price.
Thus, it is likely that whales are now trying to put pressure on retail investors to buy bitcoin at a lower price before the launch of Bakkt.
Trade war
Over the past few months, Bitcoin has been granted asylum asset status amid a trade war between China and the United States. Its price rose every time tensions between countries increased.
Chinese Deputy Prime Minister Liu He, who was negotiating with Washington, said on August 26 that China was ready to resolve the conflict through "calm" negotiations and opposed any escalation of the trade war. Trump called it a positive sign and said that representatives of China "really want to make a deal." These statements gave an impetus to the stock market, but in the end they had a bad effect on the price of bitcoin.
Publication date 08/30/2019
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