The managing director of TJM Institutional Services, and futures trader, Jim Iuorio, said that Bitcoin’s price did not reach a bottom and it will keep falling. He said that while speaking to CNBC.
But this was not everything what he said. He added that Bitcoin was never worth $20,000 dollars as it was traded during its all time high in December 2017. Since then, the famous cryptocurrency has lost over 70% of its price, and for him, it will keep going down.
Why is Bitcoin in a bear market since December? Well, one of the main reasons according to Iuorio is that the introduction of Bitcoin Futures ultimately hurt the price of Bitcoin. The first announcement of Bitcoin futures drove the prices up, but later, as soon as the contracts kicked in, holders sold and lowered the prices significantly.
It is also important to mention that futures trading have just a 0.009 percent impact on the price of Bitcoin. Moreover, there are many reasons to think why Bitcoin could reach new highs in the future, and the price will not be heavily affected by Bitcoin’s Futures.
Moreover, BTC futures trading is cash settled, what means that there is no physical trading of the asset. Bitcoins are not really traded between individuals in the Chicago Board Options Exchange (CBOE) or the Chicago Mercantile Exchange (CME), two of the most important Bitcoin Futures providers.
Furthermore, Iuorio explained that the cryptocurrency market in general tend to overreact in both directions, up and down. Some traders tend to take exaggerate decisions after reading news or information (positive or negative) and this outperforms technicals in the market.
Mr. Iuorio commented on the matter:
Maybe $6,000 is what they defend but I look at that chart but it was one-way street up, and now it’s a one-way street down and [sic] I’m not going to be the guy who tries to catch a falling knife.”
Jeff Kilburg, founder and CEO of KKM Financials, explained that Bitcoin is suited for trading portfolio and not for a balanced one. Additionally, traders should be able to profit from the volatility seen in the last months.
During this year, Bitcoin has lost 56% and more than 70% since its all time high. The market does not seem to be recovering. Indeed, according to CoinMarketCap, Bitcoin is losing 0,4% in the last 24 hours and it is being traded around $6,000 dollars. At the moment, the market is having mixed reactions depending on the cryptocurrency, but all the changes are moderate.