Amidst a series of FUD-inducing stories regarding crackdowns and regulation in China, Korea, and India, Bitcoin has been dropping in value over the last number of days.
Numerous events over the last few days and weeks have created downward pressure on Bitcoin's value. For anyone betting on Bitcoin futures, it has been a very profitable time, despite the price drops - or more accurately, thanks to them.
The CBOE (Chicago Board Options Exchange) had future contracts expire just after the last big dip. Following the expiry of the future contracts, a significant rebound occurred. Anyone who had bet on Bitcoin being below around $10 900 USD would have made some good profits. Following the contract win, the futures trader could take his winnings and buy back into Bitcoin at a discount.
The CME (Chicago Mercantile Exchange) has its first round of Bitcoin futures set to expire this Friday, January 26. As Bitcoin is making a nice rebound now, do not be surprised if it takes a sudden turn for the worse around January 25 or so. Futures traders who are counting on a big drop may liquidate some of their Bitcoin in order to "encourage" movement.
You can take advantage of this wave of movement if you time your buys and sells carefully. Currently, Bitcoin is trending upwards, but should peak by Wednesday, or perhaps early Thursday. If you trade from Bitcoin into Ethereum or USD Tethers around that time, then buy back in after the drop on Friday, you will likely be further ahead.
I'm not a professional trader by any stretch, but I would think it would be pertinent to at least hedge some of your funds with this approach. Having said that, we will just have to wait and see what happens. In my non-expert opinion, I could see Bitcoin approaching $8-9K USD before bouncing back up on Friday. This could be an excellent buy opportunity.
Or, you can just HODL and watch the fireworks.
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