Bitcoin: Possible reasons for downtrend

Bitcoin price dropped to around $ 6,970 at the time of writing, dropping nearly $ 500 over the past 24 hours. The downtrend is counterbalanced by the fact that yesterday’s biggest news for Bitcoin and the cryptocurrency market was released after the New York Stock Exchange (NYSE), Microsoft and Starbucks announced a platform to trade “physical” Bitcoin futures will offer. 

Thus, the current downtrend stands in stark contrast to yesterday’s “Big News” that the Intercontinental Exchange (ICE), the operator of the New York Stock Exchange (NYSE), wants to create a platform for digital assets called “Bakkt” in the cryptocurrency can be traded by institutional and “normal” traders.

Inter alia, companies such as Starbucks and Microsoft will be involved in the project, with the initial focus on transforming Bitcoin into Fiat so consumers can buy everyday goods with Bitcoin. First and foremost Starbucks, with its tens of thousands of branches worldwide, could thus make a significant contribution to the adaptation of BTC into the mainstream and establish itself as a recognized form of payment.

In addition, the ICE intends to launch “physical” Bitcoin futures contracts in November, which are so different from the futures contracts currently offered on CME and CBOE that they are actually settled on bitcoins rather than just fiat money.

Despite this positive news, yesterday’s Bitcoin price fell below its $ 7,000 mark for the first time in about three weeks (since July 17), reaching a daily low of $ 6,955. Thus, the stands BTC course  just before the major support level at 6,800 USD, as well as Wall Street “crypto King” Bart Smith recently stated in an interview with CNBC.

Bitcoin’s percentage loss over the past 24 hours is over 6 percent , with a weekly loss of about 15 percent and a monthly gain of about 7 percent. Ethereum (ETH) recorded a small decline on the daily chart at just over 2 percent . Over the past week, Ethereum has fallen by around 12 percent, as has the entire past month.

Stellar (XLM) with 6.8% , Tron (TRX) with 5% and Vechain with more than 11% also write big losses . IOTA and Ethereum Classic are currently facing the market trend. While IOTA can almost increase by 4% , Ethereum Classic (ETC) is only + 0.20% . The slight positive trend of ETC is likely due to the news that Coinbase is about to be listed by ETC (for trading).

coin360 cryptocurrencies

The total market capitalization of all cryptocurrencies has dropped to around $ 253 billion, down $ 12 billion in the last 24 hours. Over the past week, total cryptocurrency capital has shrunk by about $ 43 billion, from around $ 297 billion.

market capitalization 05 august

Ultimately, it can only be speculated again, which caused yesterday’s crash and dropped the BTC price by $ 500. On Twitter, however, there is a guess. And once again BitMEX should be at the center of the action. BitMex announced yesterday for a short time that there was an internal error in the system, which made trading “very slow” or according to some users impossible

As a result of the problems in the system of BitMEX trades were not triggered, during the significant market movement. Many users of Bitmex wrote on Twitter that they had to accept heavy losses because the trades were not executed. Some users even sense a conspiracy or deliberate manipulation of the market.

Two months ago, the self-proclaimed “Truth Seeker” accused Matthew Collins (pseudonym) in a medium post, BitMEX insider trading for a circle of privileged persons and illicit commercial practices . How much truth everyone assigns to these theories, everyone has to decide for themselves.

Another theory is that the over-the-counter (OTC) market plays an important role. The Tabb Group, an American market research firm, has recently published a report that Bitcoin’s over-the-counter (OTC) market is significantly larger than the global Bitcoin crypto currency exchange market.

The report notes that the lack of liquidity on major exchanges is a major problem in handling large transactions for high profile investors. The sale of hundreds of millions of dollars to Bitcoin on a public stock exchange in a short time could crash the market, especially if there are not enough buy orders to sell large sell orders.

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