Today in the crypto world, bitcoin futures may have ruined bitcoin’s price, Venezuela reported toxic crypto propaganda, and bitcoin continued its upward price path. Reports also showed significant crypto pump-and-dump activity this year, as well as increased bitcoin over-the-counter (OTC) interest.
Catch up on the news –
Did Mainstream Bitcoin Futures Crash BTC’s Price?
Bitcoin’s all-time price high anniversary was just two days ago, seeing the asset at a fraction of its former glory. Coincidentally (or maybe not), bitcoin hit its all-time price high on the same day the Chicago Mercantile Exchange (CME) launched its bitcoin futures trading product.
Popular YouTuber Crypto Daily recently posted a video on the subject, referencing a Reddit post by “Turtlecane”. The jist of the information showed that bitcoin’s price could have been wrecked by the creation of “paper bitcoins”.
The CME and Chicago Board Options Exchange (CBOE) both created cash-settled bitcoin futures. In short, this allowed traders to trade bitcoin’s price action without ever having to touch actual bitcoin. The futures products were to be paid out in cash, which created an artificial bitcoin supply. Artificially adding to bitcoin’s supply made the asset less scarce, thus decreasing its price.
Venezuela Isn’t The Crypto Use Case You Want It To Be
Venezuela has graced many headlines this year with its astronomical inflation and attempted incorporation of a national cryptocurrency, the Petro. Venezuela’s overall efforts to incorporate crypto have been toxic.
According to a CoinDesk report, the Venezuelan government has forced citizens into using the Petro, instead of them learning about cryptocurrencies through their own interest. Additionally, there have been “aggressive outreach strategies from projects like dash.”
Blockchain Academy’s David Diaz, along with Cryptobuyer’s Jorge Farias, are working to provide free education to Venezuelan folks on bitcoin, programming, and other topics.
Bull Reversal: Bitcoin Climbs Key Price Hurdle To Target $4K
Over the past few days, bitcoin has seen a notable price rally. CoinDesk reported today that bitcoin recently exited a bearish chart pattern, closing above the important resistance level of $3,633.
Yesterday’s daily candle close also strengthened the odds for a positive three-day candle close higher than the $3,590 level. This candle will close tomorrow. Bitcoin’s price at the time of publication today was $3,750 on Bitstamp.
“So, with the short-term picture looking bullish, the focus shifts to the next major resistance levels lined up at $4,000 (psychological hurdle) and $4,410 (Nov. 29 high),” CoinDesk reported.
Crypto Market Rife With Pump-and-Dump Schemes, Study Shows
Today, Bloomberg reported on evidence showing tons of pump-and-dump activity within the crypto space. Pump-and-dumps are a type of market manipulation in which certain parties often make profits while dumping their assets of unsuspecting buyers. An academic research group called SSRN released a report with numbers showing this type of market manipulation’s prevalence.
“Researchers identified 4,818 so-called pump-and-dump attempts between January and July, using data scraped from Telegram and Discord, two encrypted messaging apps popular with the cryptocurrency community,” Bloomberg explained today.
Bitcoin OTC Trading Volume Soars As Institutions May Be Accumulating
According to a recent Bitcoinist report, over-the-counter (OTC) bitcoin buyers are apparently flocking to crypto’s largest asset. Recent research data from a company called Diar showed a significant uptick in OTC demand for bitcoin over the past few months.
Diar pondered how institutions fit into the equation. “[A]re institutional traders keeping at bay or have they shifted towards higher liquidity over-the-counter physical Bitcoin markets? The answer is likely a little bit of both,” stated Diar in their report.
Bitcoinist also mentioned the possibility of large players using OTC markets to buy, and then selling on traditional exchanges to keep prices low until they are finished accumulating.