- Bitcoin support stays strong above USD 7,000 levels
- PlanB insists that Bitcoin price was not manipulated by futures trading
- A Chicago alliance has been set up to support DeFi startups
Bitcoin trading has continued where it left off yesterday, although today’s high so far has fallen slightly lower, but the support has stayed strong with a low only USD 7,081 (CoinDesk).
One big piece of news today came from the creator of Bitcoin’s stock-to-flow model, PlanB, who today went on to say that allegations that Bitcoin price had been unfairly manipulated by the trading of Bitcoin futures was not true.
The crypto influencer, whose stock-to-flow model has been hailed as one of the most remarkably accurate model in modern times, said that it was not possible for futures to have impacted price to have the current volatile effect and that there was nothing unusual about the price in correlation to futures release.
In fact, according to stock-to-flow, the performance of Bitcoin has been following the script, even when taking into account the first appearance of a Bitcoin futures market back in December 2017. He explains:
“IMO #bitcoin price is NOT manipulated by futures… CME launched BTC futures Dec 2017. Many point to Dec 2017 ATH as proof futures have suppressed prices. But BTC prices stayed perfectly within S2F bands. I would have expected this to happen with or without futures. Nothing unusual.”
The Bitcoin futures industry has been one filled with much speculation, as it was once touted as the one financial instrument that would drive institutional money into crypto. Such was the promise that when Bakkt announced its futures possibility, analysts everywhere predicted new Bitcoin highs. And such was the disappointment that, when Bakkt finally launched after almost a year of delay, the market barely registered a blip on demand.
IMO #bitcoin price is NOT manipulated by futures. CME lauched BTC futures Dec 2017. Many point to Dec 2017 ATH as proof futures have suppressed prices. But BTC prices stayed perfectly within S2F bands. I would have expected this to happen with or without futures. Nothing unusual. pic.twitter.com/Ek6CRsH3vx
— PlanB (@100trillionUSD) April 7, 2020
Today, Bitcoin futures is worth hundreds of millions of dollars of volume daily, but its settlement dates continue to fuel speculation that they coincide with Bitcoin price dips.
PlanB insists that price is, however, still tied to new Bitcoins being released by miners (stock) to that of existing Bitcoin already in circulation (flow). Not everyone is a fan though, as a Bitfinex whale trader known on Twitter as J0e007 accused proponents of the model as “thousands of muppets”.
PlanB hit back, saying:
“Oct 2017 was at current $7k level. The introduction of futures sparked hope of massive institutional inflow (“the herd is coming”), and BTC jumped almost 3x to $20k in Dec 2017… the herd never came and prices bounced back to $7k and have been oscillating there 2.5 yrs.”
Meanwhile, a plan to save the ailing fortunes of the decentralized finance industry (DeFi) following the massive liquidations of Black Thursday, has emerged courtesy of a group of large trading and cryptocurrency companies in the United States.
The new group, introduced yesterday, call themselves the Chicago DeFi Alliance (CDA) and they hope to support and guide DeFi startups and entrepreneurs to get them into full compliance with trading regulations and other requirements.
Crypto fund Volt Capital, a founding member, said in its blog post that they hope to provide startups with “real world” feedback at as early a stage as possible so that they would be able to best use it to attract liquidity and give products and services that trading firms need and, therefore, are more likely to adopt.
“We are looking to partner with early-stage founders building the next generation of financial tooling. Being accepted into the program allows startups to leverage CDA’s expertise in sourcing liquidity and product strategy to scale their offerings to professional traders globally.
Image Courtesy: Pixabay