0
📰 News

Bakkt Launch to Blame for 20 Percent Bitcoin Price Drop: JPMorgan Analysts

  • 📰 News

    JPMorgan strategists believe that the Bakkt flop is directly linked to the steep cryptocurrency market crash

Cover image via news.u.today
Contents

According to Bloomberg, JPMorgan analysts state that the much-awaited launch of Bakkt's physically-delivered Bitcoin futures is the reason why the BTC price tanked by more than 20 percent this week. 

👉MUST READ

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000: "Buy It"

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000:

The writing was on the wall

While hardly anyone denies that the fact that Jeffrey Sprecher-helmed Intercontinental Exchange diving feet-first into Bitcoin is a major milestone for this nascent asset class, there was no consensus within the crypto community about how it would impact the market. 

As reported by U.Today, Anthony Pompliano of Morgan Creek Digital conducted a Twitter poll to gauge the sentiment within the crypto community. 26 percent of the responders believed that the price would go down. As it turned out, the Bitcoin bears hit the nail on the head this time around. 


Notably, the launch of cash-settled Bitcoin futures by CME Group also sent the market into freefall at the end of December 2017, kicking off a prolonging crypto winter. 

👉MUST READ

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000: "Buy It"

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000:

JPMorgan is on the same page

JPMorgan strategists claim that Bakkt signifies the maturity stage of the nascent cryptocurrency market, but they also believe that the ICE-backed exchange is responsible for the steep price drop. After hyping up its launch for months, it debuted with very underwhelming trading volumes.             

“It may be that the listing of physically settled futures contracts (that enables some holders of physical Bitcoin e.g. miners to hedge exposures) has contributed to recent price declines, rather than the low initial volumes,” the banking giant said in its recent report.

They have also noticed that the number of long positions in CME Bitcoin futures contracts has significantly declined over the past few months. 

👉MUST READ

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000: "Buy It"

Morgan Creek Capital CEO Mark Yusko Reacts to Bitcoin Price Dropping Below $8,000:

"Rule of 10 best days"

The dramatic BTC price downturn called into question the bull market narrative. The relative strength index (RSI), which is used to evaluate overbought and oversold conditions, dipped below 50 for the first time since April (a major red flag for the bulls). 

Meanwhile, Fundstrat analyst Tom Lee reminds investors that holding is the best way to catch the biggest gains given that they usually come in just 10 days. 

Subscribe to News.U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

This block is broken or missing. You may be missing content or you might need to enable the original module.
Recommended articles
0
📰 News

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • 📰 News

    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Cover image via www.123rf.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

👉MUST READ

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

Subscribe to News.U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

This block is broken or missing. You may be missing content or you might need to enable the original module.
Recommended articles