0
📰 News
6264 views

Bitcoin Futures Might Have Triggered Massive BTC Price Drop

  • Alex Dovbnya
    📰 News

    The Bitcoin price plunging below the $10,000 mark was a foreseeable event given that 50 percent of CME’s BTC futures contracts are set to expire this week

Bitcoin Futures Might Have Triggered Massive BTC Price Drop
Cover image via www.123rf.com

Bitcoin, the top cryptocurrency by market capitalization, experienced more than a five percent drop on Aug. 28 with $144 mln longs being liquidated on the BitMEX exchange.

👉MUST READ

Financial Analyst Max Keiser Explains Why Bitcoin Price Will Hit $25,000

Financial Analyst Max Keiser Explains Why Bitcoin Price Will Hit $25,000

According to Dave Balter of Flipside Crypto, this sudden sell-off might have been caused by the expiration of CME’s Bitcoin futures contracts.

From our end, it looks like it was a sell-off to cash settle futures that are coming due on Friday for BTC,” Balter told Fortune.

Nearly 50 percent of the open interest for Bitcoin futures contracts is set to expire on Aug. 30, which was definitely a harbinger of more price volatility.

Meanwhile, Arca CIO Jeff Dorman believes that the most recent downturn was caused by a double-whammy of CME futures expiration and low trading volumes. When there is low liquidity in the market, it’s much easier for whales to pull all the strings.

Volumes are low and it takes very little to move markets right now, and you have big futures/options expirations coming up at the end of the week.

Dorman claims there is not enough bullish sentiment to keep the BTC price afloat.

👉MUST READ

Bitcoin Price Is Trying to Forge Short-Term Bottom: Bollinger Bands Creator

Bitcoin Price Is Trying to Forge Short-Term Bottom: Bollinger Bands Creator

However, the Chicago-based exchange continues to set new records with its Bitcoin futures product. As reported by U.Today, the number of contracts this month has risen by a whopping 132 percent since last year, and CME doesn’t plan to close up shop anytime soon.

In the meantime, ICE-backed exchange Bakkt has announced the launch of its custody solution prior to rolling out physically-settled Bitcoin futures.

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.

Recommended articles
0
📰 News
158 views

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

  • Yuri Molchan
    📰 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’

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

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

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.

Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings