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June 15, 2018, 03:50:35 PM |
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For traders Bitcoin conditions are currently quite difficult. The value of digital currency or cryptocurrency has fallen almost 30% in the past month, and more than 50% during the year.
But Tom Lee of Fundstrat may have just discovered the reason behind the recent weakening of the value, or at least part of it.
In a recent research note, Lee, Fundstrat's Head of Research, writes that since the launch of Bitcoin CBOE Futures Contract in December, the price has fallen before the maturity date.
"Bitcoin experienced dramatic price changes ahead of futures contracts, which is something marked by Justin Saslaw in the Raptor Group We collected some data and this does seem to be true.Overall, Bitcoin has fallen 18% within 10 days before the expiration of the CBOE contract , "wrote Lee as quoted from CNBC International, Friday (15/06/2018).
Lee, however, added two exceptions to his theory, namely in February when prices rose by almost 15% on maturity, and April when prices rose 16%.
June's CBOE Bitcoin futures expire on Wednesday (13/6/2018), with prices hitting a four-month low of the session.
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