If you look at CoinMarketCap or Cryptocompare you would notice that there’s a bloodbath in the market. Bitcoin once again fell below $8000 after reaching $8150 yesterday. Ethereum is moving between $390 – $405. VeChain a popular token among investors is down as well and is currently priced at $2.39.
So what is happening in the market? Why is the market going down this time?
The answer is Bitcoin, more specifically Bitcoin Futures. Every currency’s price is still dependant on Bitcoin, due Bitcoin’s market share. So any fluctuation in the price of Bitcoin directly affects the entire market as well.
Chicago Board of Exchange (CBOE) recorded large sell volumes on Bitcoin Futures in the past 48 hours. The large sell volume triggered the trading bots to start selling Bitcoin, even more, thus creating a network effect, and pushing the entire market down.
Moreover, Hong Kong exchange OkEx also messed up by executing irregular trades. Price of Bitcoin on OkEx went down to $4,800 even though the global price of Bitcoin was around $7,000. All these factors combined brought the market down.
Although Bitcoin has shown some resistance at the $6,600 mark, it has also demonstrated minimal signs of recovery. Volumes on most exchanges including Binance, Bitfinex, Bithumb, Bitflyer, and Upbit remain relatively low, but the volumes on futures markets are intensifying.
Here’s an interesting article on how cartels have been formed and are manipulating the market.
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