Posted 3 years ago | by Ben Armstrong
Binance Believes Investors Are Not Buying "the Dip"
Binance Research recently released their September Markets Overview report. The report is broken down into several sections including global markets, lending markets, futures, its decentralized exchange numbers, & trading. The trading section of the report contains research that points to Bitcoin moving below $8k.
Binance believes the reason for the drop from $10k to $8k was due to people anticipating the launch of the Bakkt futures trading platform. It seems as if people were simply waiting for the launch in order to sell off in a classic example of "buy the rumor, sell the news". The implication of this idea is that people expected the Bakkt launch to be sluggish so they sold off before this occurred.
Bakkt certainly did not get off to a booming start, but Binance says this was to be expected as the CME futures also started off slowly. However, the CME futures added volume over time and investors could see the same with Bakkt.
While the Bakkt sluggish start certainly attributed to the sell-off, the markets seem to suggest that its recovery may be slower than many anticipated. Investors were scared off by the $8k price and did not see it as a buying opportunity. This begs the question, if $8k is not a buying opportunity then the number investors would feel comfortable buying Bitcoin at again may be much lower.
One good piece of news for cryptocurrency investors is that while Bitcoin took a huge dip, altcoins were not greatly affected by it. Bitcoin dominance also took a hit dropping from as high as 71% all the way down to 67%. Binance believes that the reason altcoins did not have a huge drop is because many more stablecoin pairings have entered the market.