During late trading yesterday, the charts of Bitcoin were looking positive, but the Asian trading session changed everything. Bitcoin (BTC) quickly dumped back to $7,200 after a brief spike over the $7,600 mark. At the time of writing, Bitcoin (BTC) is changing hands at $7,400 but many analysts are strongly bearish on the coin. Recently, a crypto trader and analyst – Josh Rager – said:
Rager said that the digital currency is still ranging in what could be an accumulation zone. The mini-poll on CT yesterday resulted in a very even split of market sentiment. Only 53 percent, out of about 2,000 respondents, were bullish. The bottom last year consolidated around or beneath the $4k level for about four months, which was painfully referred to as Crypto Winter.
If Bitcoin has really bottomed, then it could remain in this channel until February next year when the FOMO of the reward reduction revives it.
Coincidentally, the ongoing downward correction comes after Bakkt launched more BTC-related institutional investment products. The last time this occurred was in September when the valuation of the crypto dropped by $10 billion after the launch of Bakkt’s BTC futures contracts. Today, the crypto market is down by more than 21 percent from those levels, and it looks poised to plunge below the $200 billion level again.
Bakkt launched Bitcoin monthly options and cash-settled futures in Singapore yesterday. Since the launch of the products, there have been many negative comments towards Bakkt from the digital currency community. Some members of the crypto community feel that these products are providing more tools for institutions to suppress the price of the digital currency.
Cash settled future does not do anything for Bitcoin (BTC), as it is liquidated back into the market immediately after the contract expires.
