The real reason for the fall in the price of Bitcoin
Today let’s talk about the recent events on the stock market, discuss the reason for the upgrade bottom Bitcoin at ~$4000 and prospects of development of the price movement until the end of 2019. Also consider yesterday’s statement, which can affect the market, as well as the possibility of a bullish rally in 2018.
Yesterday, the Bitcoin price recovered somewhat after falling to a low of $4 200, sufficient amounts from the buyer back the price in the area $4 800, after which the price again declined to $4 000. Why did this happen?
Bakkt postpones the launch of futures on Bitcoin until January 2019
Initially, the launch of the platform Bakkt was scheduled for December 12, 2018, which, coupled with the possible adoption of ETF gave some potential for bullish rally in late 2018/early 2019. However, the launch was postponed until 24 January 2019 that later the original date by nearly two months.
ICE explained that the postponement of the date will allow the platform to recruit a sufficient number of traders and clearing houses before bidding. This is due to the high demand on the platform and the necessary work for the organization of the registration process. Bakkt not the first time that postpones the launch of their own futures platform, the initial launch date was listed 5th of November 2018.
News about Bakkt appear for three months, which is more than enough to assess the demand for their services and determine the date of launch. Some attribute the postponement of a lack of approval from the CFTC, however, we have already seen how the CME received approval for 9 days before the start of trading. Thus, Bakkt could be approved in early December.
The official reason for the postponement of the launch seems absolutely meaningless. On the official website of the platform of Twitter users leave negative comments, which brings us to the question about the real reason for the drop in Bitcoin prices after the long sideways movement.
Statement Bakkt disappointed me for two reasons. In the first place, it seems that they specifically extend the bearish trend to Bitcoin, to give the opportunity to institutional investors to enter the market at prices beginning in 2017, so do not miss the hysteria of the end of 2017. Second, given their defense, this step is more like a manipulation. People in the market are now strained more than ever before, and this transfer adds to the negative overall sentiment.
Many have linked the reduction in the price war mining capacities between the leaders of the BCH Craig Wright and Roger Ver. At the same time, last year when listing Cash Bitcoin on Coinbase was held insider trading, which allowed many to profit before you publish relevant news. This suggests that some market participants knew of the approach of recent news and conducted insider trading. Some may be confused by such a question, because the open manipulation of prices runs counter to the intentions of the Bitcoin Cash becoming a sustainable business from 2019. However, don’t underestimate the awareness of whales.
Now the prices look healthy, especially given recent impetus by the seller. Bitcoin went back to $4 500 and continues slow growth. On the last day some coins are greatly increased. I was pleased with the fact that Bakkt failed to give the market the degree of fear which I expected to see, although they killed the hope for a bullish rally to the end of the year (provided that we will not see the adoption of the ETF). This situation reminds me of the postponement of the review of applications by ETF from CBOE in September, when the market did not react so violently. At the Tether are large volumes, which indicates a partial return to the market.
Over the next few weeks before Christmas we should see how strong Bitcoin data on price levels. Personally, I do not believe that the price may go below $3 800 by the fact that the rebound came from $4 000, gives me more confidence in it. I think the price is waiting for the formation of a new level of support, particularly because more do not see the potential negative news, which could affect the price. It is interesting to watch the further behavior of the market from the current point, since the growth potential is very large. However, the potential loss is also possible, because investment banks tend to provide the best conditions for private investors.