$12,000 lost and regained, Bitcoin's sharp drop is related to the futures price gap

According to Bitpush data, Bitcoin, the cryptocurrency with the largest market value, broke through $12,000 at noon Beijing time on Monday, but the good times did not last long. After hitting a one-year high, it fell sharply and quickly fell back to above $11,500.

This sharp drop also filled the price gap between CME's Bitcoin futures market and the Bitcoin spot market. Since futures trading platforms such as CME do not trade on non-working days, the price changes of Bitcoin spot on weekends lead to a large divergence with futures prices. Historical data shows that the price of the spot market will rise or fall sharply after the futures market opens to fill this gap.

Cointelegraph analyst Michaël van de Poppe believes that the price of Bitcoin will resume the sideways trend of the previous few months, price fluctuations will decrease, and $10,000 will become a solid support for Bitcoin. However, he also pointed out that if it can stay above $12,000, breaking through $13,000 will be just around the corner.

Adam Mancini, a well-known Bitcoin trader, said that as the price of Bitcoin rises steadily, it may break through the $15,000 mark in the next few weeks. Inflation in the United States and intensified Sino-US relations will be the driving force behind the rise in Bitcoin prices.

Regarding the current trend of the crypto market, Ethereum co-founder Vitalik Buterin said he has a wide price range expectation for Bitcoin and other cryptocurrencies.

“Basically, we should be prepared for anything between significantly lower price levels and multi-trillion dollar market caps,” he tweeted.

Image source: pixabay

AuthorLiang Che

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