September saw two distinct states of equilibrium separated by a sharp drop. The drop started roughly at 2019-09-24 0000, i.e. around midnight on 09-23, and lasted about a day.
An enlightening explanation for the drop was from Cointelegraph.com:-
A few speculators might have built up positions expecting the prices to surge following the launch of Bakkt. However, when that did not play out, they started closing their trades in a hurry. As a result, important support levels cracked and the rest of the traders were forced to close their long positions.
What did other experts have to say about the drop? Just like for previous 'Bitcoin in the News : More++' posts, I isolated all articles from a single source looking for a pattern. The following are all from Forbes.com:-
- 2019-09-23: Bitcoin Market Falls Sharply As Litecoin Suddenly Crashes • I first read that headline as a cause-effect relationship, but the article presents it as a coincidence.
- 2019-09-24: Bitcoin, Ethereum, Ripple’s XRP, And Litecoin In Shock Meltdown • 'The sudden sell-off, which wiped $20 billion from bitcoin's value and a further $5 billion from the combined value of the wider crypto market, was put down to the muted reaction to the launch of the hotly-anticipated Bakkt bitcoin and cryptocurrency platform.'
- 2019-09-24: Wall Street Paves The Way For Bitcoin To Become 'People's Currency' • 'Wall Street is working to ease Bitcoin’s volatility by introducing Bitcoin derivative products. Like the Bakkt Regulated Bitcoin Futures introduced this week.'
- 2019-09-25: ‘Striking’ Bitcoin Market Manipulation Revealed • 'New research has warned of a "striking systematic trend" in bitcoin price movements, with bitcoin falling far further than average ahead of CME's bitcoin futures contracts being settled each month.'
- 2019-09-25: Bitcoin Has Crashed -- What Now? • 'Back the direction you believe is the long-term outcome and buy the dips or don’t play at all.' • Why not go short?
- 2019-09-26: Bitcoin Price Sees Second Sharp Decline This Week, Falling Below $8,000 • 'Following a decline of more than 15% in an hour on Tuesday [09-24], the Bitcoin price fell another 8% Thursday morning [09-26].'
- 2019-09-27: Bitcoin Chaos Continues As Facebook’s Mark Zuckerberg Reveals Libra Woes • 'Facebook chief executive Mark Zuckerberg has revealed his libra cryptocurrency, which is largely credited with sparking bitcoin's bull run earlier this year, may not launch in 2020, as previously expected.'
- 2019-09-29: Bitcoin Mayhem Results In Mixed Messages • 'As bitcoin technical data looks bleak and bitcoin bulls advise traders to "buy bitcoin at every chance"...'
- 2019-09-29: Bitcoin, ETH, XRP, LTC, And XLM Sell-off -- Is It Overdone? • 'The losses spread across the entire market, with only 11 out of the top 100 cryptocurrencies advancing and 89 declining.'
There were other stories in September, but none were as revealing as the Bakkt fiasco. Maybe 'fiasco' is an overstatement. Time will tell.
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