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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