Manipulation??? Bitcoin DROPS Before CME Futures Settlement Dates!!!

To catch up with everything going on in the crypto industry, I have picked out four pretty hot pieces of news to share with you. Now first of all, according to recent findings from Arcane Research, it looks like CME Group’s Bitcoin Futures settlement dates, in particular, appear to be negatively influencing Bitcoin markets. Second up, in response to an accusation from the SEC for conducting an unregistered offering, Kik CEO Ted Livingston has vowed to fight the SEC until their very last dollar. Next up, the recently re-established Medici Bank is going to take on its first crypto clients – two or three of these companies will be cryptocurrency businesses, while the other will be an exchange. Last but not least, in an interview with Nikkei, the CEO of Facebook Mark Zuckerberg has confirmed that they will take on the overall feedback regarding the Libra token and work through the issues before the token’s launch.


The Market Today

Today we have a pretty bearish market once again. Bitcoin is continuously losing its value, dropping 4.43% and standing at lower than $8K by the time of writing. Ethereum and XRP are also following the downward trend, decreasing by 2.1% and 1.65% respectively.

Is Bitcoin manipulated by CME Group?

In the first news segment, it looks like new research this week has shown that future settlement dates end up manipulating the Bitcoin prices. According to Arcane Research, CME Group’s Bitcoin futures settlement dates, in particular, appear to be negatively influencing Bitcoin markets. Arcane research found that if they analyzed price behavior from January 2018 to August 2019, 75% of the times immediately before CME issues payouts, the price and value of Bitcoin feel. Although the CME was one of the first operators to launch Bitcoin futures in December 2017, since then, interest has peaked, with 2019 showing frequent all-time highs when it comes to trading volumes. Interestingly after Arcane published their findings, a few hours later Bitcoin fell 15% bottoming out at $8,000. It just happened to occur a few days before major settlement date – that on Friday 50% of open interest in Bitcoin options will expire. But that’s not all, looks like this week we also have the launch of a new futures product from, Bakkt. It looks like the unexpected drop in Bitcoin prices, is what Bakkt, states is the market finding its true value. Now Arcane noted that

“The figures thus support a hypothesis that Bitcoin price is manipulated in advance of CME settlement.”


Norwegian crypto news outlet Kryptografen, however, weighed in and stated

“The figures do not say anything about ‘deliberate manipulation’ or, for example, only a result of investors’ strategy of hedging.”


Kik Founder will fight SEC at all cost

According to a report on Cointelegraph, the CEO and founder of Kik, the Canadian social media and messaging app, has pledged to fight U.S. regulators to protect the native Kin (KIN) cryptocurrency case “no matter how hard it is.” If you haven’t heard about this case, let me give you a bit of context. The SEC accused Kik of illegally offering $100 million unregistered token offerings. Now, in an interview with Global News on Sept. 25, Kik CEO Ted Livingston vowed:

“We have to keep going. Until that’s it, we don’t have a dollar left, a person left. We will keep going no matter how hard it is.”


The CEO pledges to fight to win these legal challenges, stating that, if the Kin token is labeled as a security, It will no longer work, imperiling the company’s revenue model. He stated

“We feel very confident that we are correct. We need to fight.”


The CEO noted that he remains committed to Kin because he sees cryptocurrencies as the only way to fight an ever-increasing concentration of wealth and the prevalence of monopolies.

“Cryptocurrencies are the only way, the only tool we have now that we can counteract that, where we can build a new economy with a new form of money where we can rewrite the rules for how wealth and value are created in a global society.”


Medici Bank enters the cryptographic ecosystem

According to a report on Coindesk, the newly re-born Medici Bank is about to take on it first cryptocurrency-related clients which include a crypto business and an exchange. The news was exclusively revealed to CoinDesk, and noted that the Bank will be launching into private Beta in October. They will undergo a testing phase to see if the bank’s systems can scale to accommodate trading volumes. While many banks tend to avoid the cryptocurrency sector due to the perceived risk of money laundering, which makes compliance quite expensive relative to the revenue the account actually brings in, it’s great to see the Medici Bank join the list of financial institutions that are open to welcoming cryptocurrency companies. According to Ed Boyle, the CEO of Medici,

“There are [fewer] than 10 banks on the entire planet that are crypto-friendly.”


Medici not only plans to use blockchain technology, but their broader ambitions lie within decentralizing banking. According to the CEO:

“Banks like to put up walled gardens and make it difficult for you to take your money elsewhere, we want to make it very easy for you to send your money elsewhere, whether it’s from one place to another or from one bank to another.”


Libra takes a more careful approach

We’ve spoken a lot about the LIbra Token and their initial plan to roll out the digital currency in 2020. But it looks like after all the commotion, Mark Zuckerberg, the founder and CEO of Facebook has now withdrawn the date and stated that the Libra cryptocurrency token has no launch date as of now. Unlike its other projects, Zuckerberg is taking a significantly more careful approach. In an interview with Nikkei on September 26, Zuckerberg shared his thoughts on the situation.

Part of the approach and how we’ve changed is that now when we do things that are going to be very sensitive for society, we want to have a period where we can go out and talk about them and consult with people and get feedback and work through the issues before rolling them out. And that’s a very different approach than what we might have taken five years ago. But I think it’s the right way for us to do this at the scale that we operate in.”


Weighing on the issue, CEO of Coinbase Brian Armstrong tweeted,

“Libra is one of several important crypto projects on the horizon with the potential to improve the world. Whether it works or not still remains to be seen, but I find the backlash to it a bit odd and misguided.”


And there you have it guys!

So what are your thoughts regarding all the news?

Do you think that it is a coincidence concerning the CME Bitcoin futures settlement dates and Bitcoin’s falling value?

Do you think Kik will beat the SEC?

Are you excited to see more banks embracing crypto?

And are you excited, glad, disappointed to hear Facebook taking a cautious stance with the Libra token?


Please leave a comment right below to let me know what you guys are thinking


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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.

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