Bitcoin has lost almost 7% during the last 24 hours, according to Coinmarketcap data, taking analysts by surprise. Here are main reasons why the cryptocurrency is testing new support levels right now.
CME’s Bitcoin Futures
Bitcoin’s latest crash, which started on Wednesday afternoon, sent prices below the $9,500 level for the first time since July.
While it’s difficult to determine an evident catalyst of the bearish trend, some suggest that we should have a look at CME and other platforms providing crypto derivatives trading. This Friday coincides with the expiration dates for Bitcoin futures at the Chicago-based CME. Thus, many investors sold their holdings to settle the futures that are expiring soon, triggering the downtrend. About half of the open interest of BTC futures is about to expire tomorrow.
Dave Balter, CEO of Flipside Crypto, told Bloomberg:
From our end, it looks like it was a sell-off to cash settle futures that are coming due on Friday for BTC.
The sell-off is harder to ignore, especially amid the…