Severe downtrend in the cryptomarkets, must be a kind of panic attack again. And the ETF {Exchange Traded Fund} for Bitcoin has not been prosponed, 11 march is still a few days away. Release 0.14 of Bitcoin will even pull blocks in faster, so that is good news right? It is a world of wonder, the financial crypto market, just like the traditional financial market. There is a lot of gut feeling going on. Or manipulations even, just release suggestive stories about China and Bitcoin, and just a few hours later, BINGO, buy low, sell high! Oh, how I whish I had stored my BTC in NUbits in time and then just wait, the leverage that would have given. But I was too busy with saving the Slothcoin, making millions in the proces, okay in SLOTH, but still...

And I guess there has been a lot Oracle of Delphi going on lately. Meaning that the Binary Options Trading {BOT} for Bitcoin must have gone crazy the past few days. And maybe there are those for other coins too. Where the most would be PUT options, or speculations on a price drop. This kind of financial market is a derivative of the real financial trade market. It is used to create extra leverage, or to, more or less, secure a loss due to a price drop. But be aware though, this is not a manual for Binary Options Trading. It is a very high risk form of investment, highly speculative and the leverage can be huge, but losing a lot can happen too. Like gambling in a Casino roulette, all on red (think price down, PUT option), or all on black (think price up, CALL option).

Still have not found any reason for this apparant overall crypto market panic sell. Could it be influenced by Binary Option Trading? Well, in a sense that could, if there are many PUT options set, then those who follow this, could see this as a hunch, a gut feeling, that there is going to be a big dump. And then if one kept their cool, there would be no sell, but just to wait, even though there is a price drop. At some point this might even be interesting to buy more BTC, DASH or Steem. Even Steem seems to be infected by an overall market sell panic. Yet, the upside is that while others sell low, others can buy more for the same amount. And this could make the prices rise again. Sometimes it just takes time.

Cold storage needs more BTC

If Bitcoin can be considered the market pusher then the upcoming ETF approval, where BTC can be traded on the traditional financial market, through company shares, might be in need for a low BTC price. Now, do not ask me how this is done, when gossip about China is not the reason for the price drop. It could be a scenario where a combination of the Binary Options Trade market for Bitcoin and the upcoming expected approval of the Exchange Traded Fund {EFT} set off a large BTC dump. Where other 'coins' would follow the trail, also because their value indirectly depends on that of Bitcoin. So there is a ripple effect there.

The expectation could have been that, prior to the decission of the American Securities and Exchange Commission {SEC} for Bitcoin to become an Exchange Traded Fund {EFT}, a lot would want to sell at the current high. When looking at the Binary Option Trade market for Bitcoin as a predictor, they do not call it an 'Oracle' for nothing, right, then this might have been the final dump trigger. Because when large PUT options are set, this would almost make it worth selling, days prior to the 11th or march. Why? If the American Securities and Exchange Commission {SEC} gives Winklevoss Bitcoin Trust a green light on entering the traditional financial market, then they might want more BTC to put in cold storage.

But why already sell now

From my point of view a lot of market movement in any financial market is based on suggestions, predictions and expectations. Will the roulette ball drop in red, or in black, or even green, what could be seen as a bankrupt. High risks, high stakes, all about speculation and a lot of gut feeling. If it were science, it would not be interesting actually. It is more like a game. So, again, my guess is as good, or as bad as yours.

In the current situation the dump on the crypto market might be that it is expected that the EFT will be prosponed. So, no trade in BTC stock yet. Sometimes it happens that fake news is released that would suggest that the American Securities and Exchange Commission {SEC} is about to prospone the Exchange Traded Fund {EFT} for the Winklevoss Bitcoin Trust. This could benefit those who want to get in on Bitcoin at a low, speculating that the EFT will actually get a green light, for instance. And when it does, there could be an extreme demand for BTC on the market. And a lot would be stacked in cold storage, making Bitcoin more scarse, pushing up the price even more.

Ask the Oracle

It would be interesting to see how the Binary Option Trade market evolves over the next two days. If there are a lot of PUT options set then that might be a sign to wait a bit more before to buy. A lot of CALL options set might tell the opposite. And then looking at the time table for these options might show a different picture all together. It is a realm that sometimes goes way over my head. And I can imagine that it can become very addictive. Some do live for the high risk that comes with it, the adrenaline rush. For me it is fascinating to dive into and being dazzled that even things like Binary Options Trading can excist. As it is a pure derivative that has nothing to do with the underlying asset directly. But especially these derivatives seem to be dominating all the financial based markets...

And as always, when I'm posting about these kind of speculations, I end with this: only put in what you are willing and able to lose. Also remember that for my predictions I use a crystal ball, tea leave, three pigs, a bucket and some truffels.

Have a good one!

100% Power Up Post {PUP}

photo cc-by-sa @oldambtster