As we have been reporting, the last 24 hours have seen the market turn strongly bearish. Despite this plunge lasting for hours, no one has been able to pinpoint what has triggered the downward trend. However, one analyst is speculating that Bitcoin Futures could have played a major role in the market shedding off over $15 billion.
According to technical analyst and trader Josh Olszewicz, the Bitcoin futures market recording an all-time high daily volume last week could have triggered a sell-off pressure that saw prices plunge. According to the analyst, on 19th Feb Chicago Mercantile Exchange (CME) cleared 18,000 BTC contracts surpassing its daily volume high of a little over 10,000.
“The CME BTC futures contracts first opened in December 2017 on low volume, but volumes for the product have increased significantly throughout 2018. Last week, CME saw the highest volume ever in a single day for the BTC futures product.”
With CME facilitating the largest portion of derivatives contracts in the world, Olszewicz believes it could have triggered the sell-off and plunge in the market.
Markets analyst Alex Krüger, has stated that the drop was merely a correction following a short-term rally. He stated that Ethereum had just rallied by 60% in February, a 38% gain without a pullback, calling for a further price correction. In addition to Ethereum, Bitcoin had just hit a major resistance position of $4,200 in a very short time.
Cardano [ADA] Recording One Of The Sharpest Drops
Among the coins wiping out gains in the millions includes Cardano which is recording a drop in double digits. At the time of press, Cardano is down by 12%, trading for a little over $0.043. Prior to the plunge, things were looking positive for the token given the rocky couple of weeks it has been through hitting.
During the rally the coin hit a high of $0.050, a position holders will be envying for the next couple of days. A top 10 position continues to elude the coin as its market cap is still around $300 million behind tenth ranked Binance coin. However, the coin seems to be edging close to Bitcoin SV with only $60 million to go.
Cardano is expected to find some stability in its current position with a rally out of sight unless triggered by a wider market rally.