Hi traders, price manipulation continues in cryptoland.
On Wednesday, September 5th at 7AM EST Business Insider dropped the news that Goldman was rolling back its plan to open a crypto trading desk, citing "people familiar with the matter".
At 11 AM London time the market started to dump on all major Bitcoin/USD markets (Bitfinex, BitMex, Binance) losing nearly 10% as the price plummeted from $7300 down to nearly $6300, losing nearly 10% and shedding a complete bloodbath on the market.
I was in New York yesterday and I was co-chairing our risk committee, and I saw the news article,” said CFO Marty Chavez, referring to the report yesterday. “It wasn’t like we announced anything or that anything had changed for us… I never thought I’d hear myself actually use this term, but I’d really have to describe that as fake news.
At this time of year there is a 5 hours time difference between London and New York which means that it was 12pm London time when the (fake) news hit the general public.
Which means that the dump started 1 hour prior to the news being revealed.
I guess they call it Business Insiders for a reason.
Beside being another terrible example of the constant, blatant market manipulation so vehemently criticized by the SEC in defense of their persistent refusal to green light a Bitcoin ETF, this sad story shows that very little has changed since "institutional players" have officially entered the space.
I remember back in November 2017, when CME Group's Leo Melamed arrogantly announced that [the futures market] would "tame Bitcoin":
We will regulate, make bitcoin not wild, nor wilder. We'll tame it into a regular type instrument of trade with rules.
Well, tamed Bitcoin certainly was:
If by tamed he meant over 60% loss in the course of a year.
Better watch out for those ETH futures market coming out soon, courtesy of CBOE.
Back to you traders, where do you see the market go from there and what effect would ETH futures contract have on the price of ETH?
Until next time,
If you liked this article, make sure to show some love by up-voting or following yours truly. You can also follow me on Twitter at F0xSociety and join my Discord Community for daily live updates Monday to Friday.
May the FØx be with you.