The Bitcoin falls 9% to go under $ 4,000 again with the future CME Bitcoins

Lot of CMC Bitcoin futures contracts they are expiring today. Unfortunately, this may have caused some impact on the Bitcoin market as the token lagged behind $ 4,000 USD at the time of this report.

Future contracts on CMC Bitcoin expire on the last Friday of each month. Therefore, all contracts were closed today. This creates a sort of cycle in which prices always suffer a blow at the end of the month. There were only a few exceptions this year as February, when the bear market was not yet as strong.

Tom Lee, from Fundstrat, explained how the end of the contracts is linked to the price of Bitcoin in May. According to him, if a trader is long Bitcoin and shorts the future, the holders can end up selling a large part of the tokens to minimize the tracking error. When the expiration date is close, they may end up selling the remaining Bitcoin and this may cause the main prices to fall.

It happens, according to the economist of Fundstrat, because they are leaving a short position in futures to close with a nice profit.

The end of the month causes prices to fall

As has been explained, this means that there is a great possibility that prices will drop and will be interrupted at the end of each month because some contracts always expire at the end of the month. This had an impact on Bitcoin, which increased by 12% and was reduced again. At the time of this report, Bitcoin is worth $ 3,975 and is almost at the $ 4,000 USD level.

This is a pretty good sign as it shows that money can recover part of its value. Some economists are not so happy, however, because they believe there is a possibility that Bitcoin may end up seeing the low end of $ 3,000 USD and even see its price drop to $ 1,000 USD.

Fred Wilson, for example, used his experience as a venture capitalist to say that encrypted assets are down from 95% to 95% in the United States and that they can go even lower if the market does not turn around.

He believes that the criptos will follow Amazon. They really hit the bottom and now they will accumulate value and end up surviving, but this will certainly take a long time. However, prices will rise again making certain investors more confident and there is the possibility that the token can finally see a recovery as expected.