Bitcoin futures and the recent big dip on Bitcoin

What happened

---

Everybody was so pumped about Bitcoin at the end of 2017 because it went through the roof plus the media jumped on the bandwagon too and brought this whole topic to the masses.

...and then came the big dip, starting already right before Christmas with its final bottom on January 17.
Many people got freaked out and sold in panic, especially the newbies who didn't have much experience with trading in general and cryptocurrencies in particular.

Most people didn't understand what was happening. Bitcoin was the sure thing to make some profit and then it fell. Everybody was trying to figure out why this was happening and looking for a satisfying answer. But this is not easy at all. Sure, there were a lot of different news, fake news, alternative facts and whatever else out there.

Different possible reasons

---

There were actually quite a few disturbing news which could lead to the FUD:

• South Korea wants to ban cryptocurrency trading

• China wants to ban the mining of Bitcoin

• Mike Bell from JP Morgan is claiming the Governments could ban cryptocurrencies

• the January effect

Even the crypto guru John McAfee was pointing out one of those big news as the result of this big correction as you can see on the following picture:

Source: Twitter account of John McAfee

What about the futures?

---

I guess all of these news surely had some impact on the down trend of Bitcoin but in my opinion a few big Bitcoin whales had the biggest impact.
Those few who own a lot of Bitcoin and made short position contracts for Bitcoin futures had an enormous interest in a low Bitcoin price.

The futures of CBOE (Chicago Board Option Exchange) closed on January 16. and the Bitcoin bears won dramatically over the bulls.

Sure, nobody really knows why the drop happened but since Bitcoin futures are available now the big Wall Street players got a new playground and Bitcoin investors should be aware of that.

Be warned beacuse CME's Bitcoin futures will expire on January 26.
I don't say such a big drop will happen before that day again but there might be a correction. Who knows.

cLyyDe out