Negative Bitcoin Chatter on the Rise

The Day Before

We were expecting the Bitcoin world to pop upon the launch of CME Bitcoin futures on Monday, but instead it’s been more of a whimper for Bitcoin.

The moves through Monday were certainly not what the cryptomarkets are usually accustomed to, with Bitcoin moving within a relatively tight range for a cryptocurrency that normally sees more significant intraday moves.

Bitcoins failure to make another run at $20,000 was largely down to the fall in the January Bitcoin Futures price back down to $19,000 levels on the CME futures exchange, with the Cboe Bitcoin futures contract for January only just managing to hold on to $19,000 levels.

Adding to the pressure on Bitcoin this week has been an increase in speculation that Bitcoin may now be on the high side, price wise and may well see a correction as investors consider Bitcoin’s network stability, which has been tested of late.

Talk of members of the crypto fraternity shifting from Bitcoin to Bitcoin Cash won’t be doing Bitcoin any good and as we have seen before, once the negative chatter starts, it’s hard to stop it.

We’ve yet to see the futures markets reflect the negative sentiment, with January contracts on both exchanges sitting above Bitcoin’s current value. We have also seen the prices on the Cboe and CME futures exchanges converge, which will be good news, though when the smart money begins to pull down the Bitcoin futures prices remains to be seen, with investors playing it safe for now.

As it Stands

At the time of writing, Bitcoin is down 1.16% to $18,719.94 and is the only one of the top 5 in the red, with the rest of the pack finding some solid support through the early part of the day.

While Bitcoin has been on the back foot this morning, the futures markets have painted a different story, with the CME Group’s January contract up $320 to $19,420 and the Cboe contract up $325 to $19,380.

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For the Day Ahead

Sentiment towards what’s next for Bitcoin has been mixed and, while some are suggesting that the end is near, there are others in the market continuing to call for $400,000 or even $1,000,000 values down the road.

The recent failure to make a successful run through to $20,000 levels suggests that there may be more downside for Bitcoin through the week, though as has been the case on numerous occasions, investors are quick to jump in.

For Bitcoin to avoid a move back to sub-$18,000 levels, it’s going to need to return back to this morning’s intraday high $19,160.79.

For those looking towards the Bitcoin futures markets for  direction, it’s still early days and Bitcoin continues to be impacted more from market chatter than the futures markets, with the institutional money less sensitive to the speculative talk that has been doing the rounds this week.

Some have missed the rally and are looking to burst the bubble. It may not be the speculators that ultimately bring down the Bitcoin house however, with the sheer demand for Bitcoin and the unstable network that results considered to be a key risk to price stability.

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