Thomas Lee, head of research at Fundstrat Global Advisors and one of the most influential crypto analysts named the probable cause for the recent weakness in Bitcoin. According to Lee, the expiration of cryptocurrency linked futures affected the coin which consequently dropped 20% last week.
Since the launch of CME futures on CBOE, 6 contract expirations have occurred, and the last one – on June 13 – took place in the period of all cryptocurrencies’ particular instability. That day Bitcoin was worth $300 less – it fell from $6,600 to $6,300.
Traders who buy Bitcoin and sell the futures exchange the larger number of coins the closer contracts move to expiry, and exchange at the volume weighted average price (VWAP) to minimize tracking error.
Despite the latest issues Lee foresees positive changes in the market and believes that by 2020 Bitcoin’s price will rise up to $91 thousand.