Bitcoin Futures Helped Cryptocurrency Market Achieve ‘More Sustainable Level’: CFTC Chairman
Just days later, the yearlong bitcoin price rally stalled, and the flagship cryptocurrency — followed soon after by the wider market — entered a decline that has continued throughout 2018.
According to researchers at the San Francisco branch of the Federal Reserve, the bitcoin futures launch triggered the decline, as it provided institutional investors with their first real opportunity to short the bitcoin price.
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BTC Futures | CME
Alluding to this research in an interview with Fox Business’s Maria Bartiromo, CFTC Chairman J. Christopher Giancarlo credited the futures launch — and the CFTC’s “do no harm” strategy in allowing those products to begin trading in the face of criticism — with helping pop the bitcoin price bubble and bring the market back to what some would characterize as a more sustainable level.
He said on Friday:
“According to the San Francisco Fed, it was the bitcoin futures emergence that actually sapped the bitcoin bubble that emerged at the end of 2017, and we have seen bitcoin, perhaps in some people’s view, achieve a more sustainable level than it was during the bubble period last year.”
https://www.ccn.com/bitcoin-futures-helped-cryptocurrency-market-achieve-more-sustainable-level-cftc-chairman/I personally disagree. It seems to me that futures are killing bitcoin.
