Many of you are wondering what is happening with cryptocurrencies lately. We all know that there have been many negative news to spread FUD (fear, uncertainty and doubt) that were orchestrated in order to put you all in disadvantage. But could that be the reason?
Ein Gastbeitrag von Cryptomedics im englischen Original
First of all for those that are new in that market: please study a bit of history of Bitcoin. You will realize that every January similar scenario is repeating. Right after the New Year fresh capital (excited investors) is entering market pumping prices up a bit and it always follows up with a heavy drop. Some people already call it „Bitcoin January Saga“.
The main reason to explain current situation is related to bitcoin futures (introduced last December). We are not going to explain here what futures are about as there are many good videos out there. Our point that we want to make is simple:
Futures allowed big boys from Wall Street (JP Morgan etc) to enter the crypto market without purchasing bitcoins – all futures are cash settled. And on the 17th January 2018 first batch of futures expired (CBOE) and we learned that most of those contracts were SHORTs. What does it mean?
It simply means that that those new big boys (larger than any whales we’ve seen so far) decided to play against bitcoin. While opening future contract they bet that BTC would be very cheap and to simply put: whatever they will bet on WILL ALWAYS happen. Because they want it and they have capital to back up their actions that none of us can even imagine.
Some of you can tell us that since futures are cash settled then it cannot affect the price? Sure. It cannot affect it directly.
But those guys would not allow free market to dictate prices and „hope for the best“. Once futures has been introduced – all they needed to do is to purchase some amount of BTC (huge jump at the end of last year) and just before the 17th January all they needed was to spread FUD (a few not that important news about China, Korea etc) and use their own BTC (and other altcoins) to bring the price down as low as possible.
They would lose some money selling cheaper crypto but they would make millions on futures.
Just look at all graphs and see what happend right after futures expired. For the next 2h prices of BTC and most altcoins grew very fast.
All „walls“ of cheap crypto all of the sudden disappeared. And the best part is, that since this market is totally UNANIMOUS then nothing can be proved and those big boys can do whatever they want. We (small investors) will have absolutely no protection from market speculation from now on.
Next futures (CME) will expire on the 26th January, so until then we would expect futher drop and right after we think we may go back up again (simply because those big boys will let us breathe for few weeks -> just until next futures will be about to expire (mid of Feb).
THERE IS NO MORE FREE MARKET. Big boys from Wall Street joined crypto market and there are here to stay. And now we read this: https://coinjournal.net/nasdaq-ceo-investigating-idea-bitcoin-futures-contract/
And this market is currently way too small, so manipulating prices on scale that we have never seen before will be happening quite often. It’s more important than ever to follow up all news about expiry dates of futures on CME and CBOE.
We hope that Bitcoin will lose its market dominance even more as it cannot be trusted now. It’s not your coin anymore. Let us hope that more and more exchanges will introduce different than „BTC-backed“ crypto pairs into trading. Until then, be very careful, watch futures expiration dates and keep your powder dry.
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