Bitcoin experienced strong rejection on Thursday and Friday morning due to two fundamental trends.
First and foremost, BitMEX was indicted by the U.S. CFTC for derivative and anti-money laundering concerns.
Second, it was revealed that President Trump has been infected by the globally spreading disease.
Bitcoin is currently traded at $10,500 – a handful of percent less than yesterday’s highs.
This decline led to the liquidation of millions of BTC trading positions on margin positions.
Analysts remain bullish despite the sharp downturn.
Willy Woo, a prominent on-chain analyst, expects Bitcoin to “burst” in the future.
This coincides with the opinion expressed by Mike Novogratz of Galaxy Digital.
Bitcoin will rise – despite bad news: Analyst
Willy Woo, a prominent Bitcoin analyst, believes that the crypto currency should not have to worry about the BitMEX messages.
He believes that the messages are fundamentally bullish because they could force the futures exchanges that control the market to reduce manipulation.
“Basically, the market is scared for all the wrong reasons. MEX was NOT hacked. No trader will lose coins. The futures exchanges will clean up their practices. We will see less volatility, less scams, more spot volumes, more organic movements, more institutional money.
Woo adds that this news event, coupled with fundamental on-chain trends that show that there has been an influx of new users, should help drive Bitcoin higher. He even estimates that the crypto currency will “burst” in the near future:
“Meanwhile, the fundamentals in the chain show that more new investors are coming than in the mania phase of the last cycle (Dec. 2017), without this being reflected in the price. This is because the unrestrained trading games on the derivatives platforms keep the price low”.
Not the only bull who thinks so
Woo is not the only cop in the face of BitMEX news.
Mike Novogratz, CEO of Galaxy Digital and former partner of Goldman Sachs, is also of the opinion that it is irrational to feel pessimistic about Bitcoin because of BitMEX News. Bitcoin is bigger than just a stock exchange:
“Crypto-friends, let us remember that they are innocent until proven guilty. That is a cornerstone of American justice. I have no insight into the case, but I wish @CryptoHayes all the best. I think that $btc and crypto is far greater than any single stock exchange or person. So buy dips.”
Many agree with the opinion shared by Novogratz – including Bill Barhydt of Abra and hundreds of users on Twitter who shared and licked the comment he made.