In spite of the recent price stability towards its recovery Bitcoin's vulnerability to fundamentals surrounding exchanges and regulations it now boils down more towards the sense of SECURITY and CONFIDENCE.
Especially with what transpired in Japan's Bitcoin heist which have turned into stricter enforcement with regulators. Although the mere fact that ongoing talks of regulation among exchanges and trading platforms can only be good overtime as the eventual impact of the industry has already made its mark and usefulness across other industry players.
It would just be a matter of time until these 'Clouds of Uncertainty' would clear out for Bitcoin and its relative Blockchain technology's by-products would sit on their respective places. Besides we are gathering so much big data that we would be able to use well for future reference when called for. So far the ups and downs on price swings have been quite orderly in spite of a wider drawdown below 9k mark has led other speculative traders to rush towards futures to hedge their Bitcoin holdings at this time.
Although, classic traders and investors find it difficult to do so as others may have a far better tolerance levels than those who only trades for speculative purposes. Note, that it took a month to move back below this levels and for bitcoin to do is a good sign of market stability among participants.
Related Info: In Search of ALPHA Trading EDGE
Related Info: In Search of ALPHA Trading EDGE
It's really ironic to see a double digit decline for Bitcoin. Surprising ...Not really but with the SEC / regulators probes underway anything can be expected!
ReplyDeleteMake use of what is available with the CBOE & CME Futures to protect gains made. It can only get better even when prices decline with a hedge strategy is in place. That is why it is important to ADAPT to market conditions to avoid unnecessary loss when the tide turns.
ReplyDeleteAgain, as Warren Buffet says, that it is only after the tide runs out will you see who has been swimming naked in the market.