The Bitcoin Futures Bucket Responsible For Market Crash, Analysts Says
The price of Bitcoin has tanked about 20% in the last week to reach lows of $ 8,000. It recalls the sharp fall witnessed shortly after the BTC / USD peak of 20,089 on December 17, 2017. However, analysts have not agreed on whether the stab will continue.
Meanwhile, there is a broad theory in the market that the launch of Bakkt futures is the factor of the Bitcoin bear run factor affecting the entire market.
JP Morgan analysis
Financial and Crypto market strategies and analysts at JP Morgan are one of a group of experts who believe that the launch of Bakkt Bitcoin futures triggered a market crash. According to their analysis, Bitcoin futures delivered by Bakkt physically are expected to hit the market and enhance BTC adoption. However, the market reaction is characterized by low enthusiasm. This has led to a collapse in the activity of investors leading the RSI tilt with too much effort.
Involvement in ICE in the Bitcoin Market could trigger a Bull or Bear Run
The Intercontinental Exchange’s decision to melt the Crypto market by offering futures on Bitcoin has been hailed as a point for Cryptos. Despite the positive sentiment, opinion is divided into markets where some investors have felt the bull running while others have predicted a bear cycle.
On September 20, Anthony Pompliano from Morgan Creek Digital polled Twitter users on the matter. Of the 9,418 respondents, 36% predicted that Bitcoin would rally if Bakkt BTC futures were launched. 27% forecast a run run, and 37% thought the launch had no effect on price.
History Tests Self Or Moderate?
The current market situation can be viewed from two analytical researches. The first stance is a historical reference to CME Group’s December 2017 Bitcoin futures. During this time, BTC / USD started plunging soon after the launch of Bitcoin futures trading depicting a long Crypto winter.
From this point on, the case for a bear run is supported and can predict a similar bear run as seen in late 2017 and many in 2018.
The second perspective is that the Crypto market is aging and Bitcoin futures have only triggered a brief market correction.
After the launch of Bakkt, the RSI has dipped below 50 for the first time since April 2019 indicating that most investors are selling. Tom Lee, a Fundstrat analyst, has a “rule of 10 best days” theory that estimates a strong momentum in 10 days. Therefore, from this school of thought, investors should expect a round in the new moon.
Meanwhile, 10 days after September 20th is ideal for investing for new buyers. On the other hand, hodlers are advised to be patient and cancel selling orders.
The Cryptocurrency Market Goes For A Shakeup
The cryptocurrency market is going for some major shifts based on recent developments. Over the past few weeks, the importance of Stablecoin has increased, Mastercard has announced the expansion of their own cryptocurrency offerings, and PayPal is expected to announce a new partnership with Paxos. With the economy still feeling from the global coronavirus pandemic, and telecommuting becoming the norm, cryptocurrency trading has become an alternative to traditional investing.
Stablecoin Cryptocurrency In Favor
Stability has always been a concern in the cryptocurrency market, but today it is a major factor of market importance. The market has seen a start since 2017 and the start of 2020 brought some nights. While cryptocurrency seems to be on the brink of a spike in early 2020, the pandemic stock market crash is intensifying this growth, with values, just starting to return to the levels they were in February .
Stablecoins are greatly enlarged during this time. Bound to a fiat currency or pegged against other cryptocurrencies, Stablecoins is not faced with the same volatility. They are driven by supply and demand and all types of Stablecoins, from Tether to USD Coin to Binance, all cost $ 1.00. Since 2018, Stablecoins has been rising with buyers understanding the advantage of lower volatility as it is based on fiat currency. There is also speculation that Stablecoins are used for transfer and long-term handling.
