Bitcoin Price Slips Further Below $8000, CME Bitcoin Futures Manipulation Suspec

[Lucky7btc]

This week has turned to be a major disappointment for Bitcoin investors as Bitcoin price lost 20% by now. Earlier on Wednesday, September 25, Bitcoin lost $1500 in flash crash going below $8500 and striking panic in the market. Since then the bears have held a dominant position over the bulls.

Slipping downwards further, Bitcoin breach the support of $8000 and hit a low of $7935 on Thursday, September 26. At the time of writing, BTC price sits at $8000 levels. As per the observations made by Arcane Research, there’s a strong speculation of manipulation of the Bitcoin Futures contracts offered by CME.

The report states BTC price falling an average of 2.72% during the settlement period each month, since January 2018. And as the trend follows this time as well, the BTC price sunk below $8000 before today futures expiry. Explaining this situation, Arcane Crypto analyst Bendik Norheim Schei said

“These futures contracts are optimal for manipulation. They are settled in dollars and not in bitcoin. The price for the settlement is determined by the bitcoin price in the underlying market. Thus, it is never actual bitcoin that change hands, and it is just an overlying market traded in dollars.”

He further added that it is very unlikely that it is just a mere coincidence that the BTC price tanks before the settlement of CME Bitcoin Futures contracts, every month. Schei added

“The figures thus support a hypothesis that the bitcoin price is manipulated in advance of CME settlement. However, the figures do not say anything about deliberate manipulation or, for example, only a result of investors’ strategy of hedging…”

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[mk4]

The bitcoin and cryptocurrency community in a nutshell:

• Price goes up: omg! adoption!
• Price goes down: wtf! manipulation!

Seriously. Zoom out the charts and take a look at bitcoin's price just a few months ago, and just DCA so the volatility wouldn't really be that much of a problem.

[Mandoy]

Whatever manipulation is happening around the corner and whatever conspiracy theory that is spreading as long as the bitcoin community does not panic and be threatened by the price drop then soon the value of bitcoin will go back up to 10k$. But the problem is that those price slips have caused a domino effect and have made traders and holders to fear that they will lose profit thus resulting to another price drop. But there is nothing to worry about these things, all of these things are just normal events for the bitcoin market.

[elisabetheva]

Whatever manipulation is happening around the corner and whatever conspiracy theory that is spreading as long as the bitcoin community does not panic and be threatened by the price drop then soon the value of bitcoin will go back up to 10k$. But the problem is that those price slips have caused a domino effect and have made traders and holders to fear that they will lose profit thus resulting to another price drop. But there is nothing to worry about these things, all of these things are just normal events for the bitcoin market.

With the price of bitcoin up to under $ 10K, obviously it will create its own panic as a holder of bitcoin. because you didn't expect it would break below $ 10K. because it usually moves between $ 12K to $ 15K, but now it's down dramatically. worry can certainly arise by itself because of the unexpected. although maybe will be sure to come back up above $ 10K back.

[joelsamuya]

There will always be manipulations and if that can happen to a highly regulated markets with many regulating bodies watching all transactions then it can also be happening to Bitcoin or the cryptocurrency market. Now, the thing is that this can be a big test for Bitcoin if manipulations can really last and whether they can be the rule rather than the exemption. Let's see how Bitcoin will be behaving in the next few weeks.

[drumamat]

Yes, in fact, futures are not so good for the crypto market.If the manipulation is confirmed, then it is necessary for the exchanges to find some optimal solution in order to at least reduce price manipulation.

[omone1]

This seems like a manipulation and these market futures seems to been used as tools. I am sure those experts that predicted that bitcoin was going to  $100k by year ending didn't foresee this flash crash coming. Just when we were making progress in the market, this is happening.

[joelsamuya]

Manipulations can happen anytime much more with the unregulated Bitcoin. And I think this is happening every day in the whole marketplace as forces are staging their own pull and influence. This is the reason I am not anymore shocked in case there can be manipulations that resulted into a big dip in the price of Bitcoin or any cryptocurrency for that matter. However, if the fundamentals are really in place, eventually manipulators will realize that not all the times they can be winning.

[Taskford]

Manipulations can happen anytime much more with the unregulated Bitcoin. And I think this is happening every day in the whole marketplace as forces are staging their own pull and influence. This is the reason I am not anymore shocked in case there can be manipulations that resulted into a big dip in the price of Bitcoin or any cryptocurrency for that matter. However, if the fundamentals are really in place, eventually manipulators will realize that not all the times they can be winning.

Agree and not new in the ecosystem since I saw many attempts just to make the market more profitable to them and example with that is those past ETF attempts where we can see it dumps more when they try to open those talks in the mainstream, but if we grab and learn this things we can actually earn with this ride and it can bring us profit in short time period and we make sure to accumulate the profit if there's a chance since manipulation actions is so fast.

[Pab]

For sure we have a lot of manipulation on Bitcoin trading but they exist on regulated trading assets as well
That what is warning me that on CME price of bitcoin was equal or even below price on spot exchanges
During hossa time price on CME was well above price on spot exchanges

[Kemarit]

So here we go again, this time it's CME Bitcoin Futures, I guess we still can't get over with it since they introduce this future contract at the end of 2017 and blame them as well for the bear market since. There's no one to blame here as the market is really prone to manipulation by whales, trading exchanges, institutional investors. And even one news can turn the price up and down so I'm not surprises the media has to look something to blame for the current market situations. We have been here long enough to see the swings, corrections, retracement that we shouldn't be surprise, after all crypto is a speculative assets so there could be someone from behind manipulating the price. But just remember that everything here still boils down to supply and demand.

[illyiller]

As per the observations made by Arcane Research, there’s a strong speculation of manipulation of the Bitcoin Futures contracts offered by CME.

The report states BTC price falling an average of 2.72% during the settlement period each month, since January 2018. And as the trend follows this time as well, the BTC price sunk below $8000 before today futures expiry. Explaining this situation, Arcane Crypto analyst Bendik Norheim Schei said

“These futures contracts are optimal for manipulation. They are settled in dollars and not in bitcoin. The price for the settlement is determined by the bitcoin price in the underlying market. Thus, it is never actual bitcoin that change hands, and it is just an overlying market traded in dollars.”

So CME traders are net short on the futures market, then they sell on (low liquidity) spot exchanges to force prices down before settlement?

That's exactly what BitMEX whales have been doing for years (and OKCoin before that): shorting futures/swaps with high leverage while dumping on the index exchanges. Welcome to BTC trading, Bendik!

[STT]

It shouldnt be possible for Futures to be a negative in this way, they are providing liquidity if anything.   They cannot short Bitcoin without at some point also buying that same Bitcoin, a short is a future buyer and often at the lows which gives it a positive influence in the lowest point.
    Shorts in a fractional system is harder to pin down, especially where there is an infinite production of each unit of account but we know the formula for Bitcoin is set and defined to certain amounts.  If anything BTC will reduce its block reward in the next 12 months so its certain to reduce not expand or become easier or unequally available to large dealers such as CME.     I dont especially fear them only that as professional traders, they open up the field to greater competition and some might not appreciate having to deal with a wider market in that way.