Ecoinometrics - Bitcoin CME futures and price suppression

Is it possible to see if the futures market is keeping Bitcoin's price down?

Is Bitcoin down because all risk assets are down or is it because cash settled futures are weighing on the price? 

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Bitcoin CME futures and price suppression

Maybe you have noticed that Bitcoin is down quite a bit from its all-time high. 

If that's the case you might be wondering why. 

I mean there must be a reason right? It can't be numbers go up on Monday and numbers go down on Tuesday at random. We demand a narrative to explain what's happening! 

Now feel free to propose your own narrative if you are so inclined but today we are going to consider two possible explanations for Bitcoin's price action:

• The price is down because a large amount of investors consider BTC to be a risk asset, meaning macro conditions drag it down. 

• The price is down because of the pressure from the shorts on the CME cash settled futures market.

Pressure from cash settled futures

Say you want to drive Bitcoin's price down.