Bitcoin experienced strong rejection on Thursday and Friday mornings due to two fundamental trends.
Primarily, BitMEX was indicted by the US-CFTC over derivatives and anti-money laundering concerns.
Second, it was revealed that President Trump is infected with the globally spreading disease.
Bitcoin is currently trading at $ 10,500 – a handful percent less than yesterday’s highs
This decline resulted in the liquidation of BTC trading positions worth millions on margin positions.
Analysts remain bullish despite the sharp downward trend.
Willy Woo, a prominent The News Spy analyst believes that cryptocurrency shouldn’t have a concern over the BitMEX news.
He believes the news is fundamentally bullish as it could force the futures exchanges that control the market to reduce manipulation.
“Basically, the market is scared for all the wrong reasons. MEX was NOT hacked. No trader will lose coins. The futures exchanges will clean up their practices. We will see less volatility, less fraud, more spot volume, more organic movements, more institutional money. “
Woo adds that this news event, coupled with fundamental on-chain trends showing that there has been an influx of new users, should help propel Bitcoin higher. He even estimates that the cryptocurrency will „burst“ in the near future:
“Meanwhile, the fundamentals in the chain show that more new investors are coming than in the mania phase of the last cycle (Dec. 2017), without this being reflected in the price. This is because the uninhibited trading games on the derivatives platforms keep the price low. “
Not the only cop who thinks that way
Woo isn’t the only cop in the face of BitMEX news.
Mike Novogratz, CEO of Galaxy Digital and former partner of Goldman Sachs, also believes that it is irrational to feel pessimistic about Bitcoin because of the BitMEX news . Bitcoin is bigger than just an exchange:
„Crypto friends, let’s remember they are innocent until proven guilty. This is a cornerstone of American justice. I have no insight into the case, but I wish @CryptoHayes all the best. I think $ btc and crypto is way bigger than any single exchange or person. So buy dips. “
Many agree with Novogratz’s opinion – including Abra’s Bill Barhydt and hundreds of users on Twitter who shared and liked the comment he made.