It used to be that Bitcoin trading volumes would remain unchanged from weekdays or even go up during weekends. Most of the big moves were also during weekends. This was especially true around the peak of the mania. However, this pattern has since changed, and has now definitely reversed.
High volume days with big price action no longer happen during the weekends. They happen during weekdays. This indicates that the type of people involved in Bitcoin have changed. While they used to be the average Joe, unemployed or employed, with weekends therefore especially busy, the typical Bitcoin trader now is a professional.
Bitcoin prices are now at their most stable during weekends. Prices are flat or moderately up, all on very thin volumes. Weekdays on the other hand have of late become tremendously busy, with sharp prices drops.
What we can see, is that the pattern in volume changed before the latest price action. The professional traders did not start smacking the price down right off the bat. Rather, they have spent much time accumulating their positions. The volumes reveal this to be so, and from the price action it is clear that the professionals are short Bitcoin.
They have most likely shorted futures while at the same time buying Bitcoin. With their short future options coming due, they are now busy dumping Bitcoin into a market with very few buyers. This results in losses in their Bitcoin positions, but gains in their futures. Since they are more heavily invested in short futures, they net a profit for themselves.
This is exactly what many predicted would happen once Bitcoin futures trading started a little less than a year ago, and this will continue until Bitcoin finally goes to zero. Bitcoin has no utility except for speculation. There is no drain on Bitcoin. Their numbers are fixed. This means that there is no downward limit except zero. The professionals know this. They will accumulate Bitcoin while going short on futures. They will then smack the price down by dumping large volumes of Bitcoin. Taking the profit from their futures they will again accumulate Bitcoin and short futures. This will continue until there are no genuine buyers left and Bitcoin finally goes to zero.
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