In a recent report, Markus Thielen, CEO of 10x Research, analyzes the reasons why he believes Bitcoin could drop to $55,000. The report states that Bitcoin has been in a downtrend since June 20th, with trend-following funds (CTAs) likely to heavily increase their short positions as a result. Their positions may even expand, particularly in times of decreased volatility or lower volatility scenarios. The realized volatility has only been 30%.
