The Cryptocurrency market had a bad night. Bitcoin price dropped 10 percent in an hour.
So that's the cause?
CNBC reporter thinks it could be the escalated crackdown in China and warnings from regulators.
https://www.cnbc.com/2018/01/16/bitcoin-price-slips-to-its-lowest-level-in-six-weeks.html
Does that warrant a 30% price drop? When China bans the bitcoin trading, that was only a 30% crash and only last 1 week or 2.
My theory is that it could be the future market, I have checked CBOE bitcoin futures, the Jan contracts are expiring on 17th Jan 2018. Could someone holding the short positions are manipulating the price in order to make a profit?
http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures
If that is the case, we should expect the price to bounce back after the 17th Jan 2018. Let's see whether my theory is right. It only takes 1 day to prove.
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