Today let’s take a look at the current market trends, discuss the opening of Binance U.S, and look at one theory I have on the current market situation.
Nothing should be considered investment or financial advice. Enjoy the ride.
Crypto Market Tumble
It is no surprise that the largest news right now is the drastic pull back from the $10,000 levels for Bitcoin. Not alone, almost every asset on the market in unison pulled back significantly with most top 20 coins posting -10% to even -30% retracements. Specifically, some coins like EOS lost nearly a third of its price or market cap in mere hours. Imagine losing a third of your portfolio in hours, yikes.
This is terrifying for investors and leads to a couple interesting thought about the origin of such a monstrous pull back. Ironically, this was perfectly timed with the well sought after Bakkt launch that has been touted over for the past year. The reason this launch was so predominant was due to its Bitcoin settled futures which is different from the fiat settled futures posted on other platforms.
Now, who could pose to gain from such a miserable turnout for the Bakkt initial launch? In addition, who would want Bitcoin to sink lower to familiar price levels in order to leverage into the market with more on boarding and available liquidity? Both of the questions are huge and can lead to some fun ideas.
Institutions Working to Halt Progress
My first theory is that the institutions and active whales are working together in order to suede Bitcoin from becoming too popular before the proper platforms and regulatory bodies are in place. In addition, by keeping the market smaller and preventing mass fomo similar to 2017, these bodies can stand to continually gain massive profits from shorting and dumping on the market over and over.
This would be like protecting their personal cash cow from moving on to greener pastures before they get their fill. As long as they can control the market, they will try to keep it under control.
Now the obvious argument to this is that it was more than due time for Bitcoin to face a correction after the seemingly unstoppable bull market since April. Although, the past 90 or so days did consist of a type of interval trading which saw Bitcoin range anywhere from $11,500 to $9,600 consistently.
While most people considered this a consolidation period, most seasoned traders knew Bitcoin had to retrace to around the $8,500 level before any further upward movement could be considered long-term. If institutions are involved in the retracement, then it will only be time before the market becomes too big to keep hidden. Unfortunately, manipulation will not leave the market anytime soon regardless of the market size.
Binance U.S. Lists ADA
In other news, the markets’ favorite asset gets the green light by Binance to be listed in the coming weeks. If we remember, Binance split off from its main exchange and formed a second exchange for U.S. based customers and traders. This was due to heavily increasing regulatory pressure.
Now, U.S. based customers are having to wait to trade on the coming pairings to be listed. First to come are the top coins on the market which will feature 13 trading pairs with coins like Bitcoin, Ethereum, Ripple, and a few others. Following these listings, there will be more added to the U.S. focused platform in the coming weeks which will include ADA or Cardano as a trading pair along with coins like BAT, ETC, ZRX and XLM. All of these are well known projects, and I for one and happy to see Binance listing serious projects unlike Coinbase.
With the upcoming release of the Shelly test net and rapid improvements to the eco-system, Cardano will need to continue to gain liquidity pairs.
Currently, ADA is one of the lower daily average volume coins in the top 20 and has been consistently. While the technology may be ground breaking, there will need to be demand to follow the utility. The upcoming staking features should help bolster the price back to normal levels and make Cardano seem more sought after on the market.