After falling by more than 23 percent against the U.S. dollar in the past week, Bitcoin had caused a strong and impactful correction in the cryptocurrency market once more.
Ever since it fell to $7,700, the bitcoin price eventually recovered to $8,200 in a vital move to avoiding the long drop to the low $7,000 range to test low-level supports in the short term.
The cryptocurrency trader Luke Martin said that an upside to $9,000 is expected for bitcoin after the recovery. This would relieve some of the pressure it has had on the cryptocurrency market.
Martin said that historically, the expiration of the CME bitcoin futures contracts have had a bullish result on the price trend for the leading cryptocurrency.
Last month, following the CME bitcoin futures expiration, the BTC price recovered by 11 percent against the dollar.
“Price had just dropped below 9,600 and it remained to be seen whether BTC price was going to recover and have positive returns after expiration. It did. Still a small data set, but worth paying attention to.”
Bitwise Asset Management recently released a report showing that the CME bitcoin futures market makes up for a pretty big section of the daily BTC volume once fake volumes from the cryptocurrency market are made out.
Earlier this year, the Bitwise research team said:
“And, when you remove fake volume, CME and CBOE futures volume is significant ($91M), especially compared to the real spot volume (35% for Feb 2019). This is good news because it means CME— a regulated, surveilled market— is of material size, which is important for an ETF.”
It will be interesting to see how this situation plays out. But remember to please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
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