San Francisco Fed: The launch of bitcoin futures lead to the declining price on 17, December

[CryptocurrencyR]

San Francisco Fed released an economic letter on 7, May, stating the reason why Bitcoin price fell after peaking at 20,000 US dollars. It may because of Bitcoin futures trading.

The letter showed that after the promotion of the futures market, it seemed that the rapid rise and decline was not coincidental, but it is consistent with the trading that introduced by futures market.

The highest price of Bitcoins coincides with the Bitcoin futures launched by the Chicago Mercantile Exchange (CME) in mid-December last year. A week ago, the Chicago Board Options Exchange (CBOE) also launched Bitcoin futures, although the trading was not so good as prediction.

According to the letter, the optimistic investors believe that btc price will go up, which is the only reason why the price of Bitcoin has soared. Sustained growth has been attracting more optimists, who increased the demand.

Pessimists don't have the tools available to short the bitcoin and profit from betting on the bearish price until the launch of Bitcoin futures. The new investment opportunity has led to the decrease of Bitcoin market demand, which subsequently caused declining price.

The letter also mentioned that due to the relatively low transaction volume of Bitcoin trading in the futures market, Bitcoin value did not slump overnight after the launch of CBOE and CME futures.

[GregoriLo]

In San Francisco not only reduce the price of bitcoins. By the way, this price always jumps. So there is nothing to be surprised. But in san francisco there are a lot of cool things. I often visit this city at work. I always order juice there. It's probably best cold pressed juices so you can buy yourself some. I never regretted my money for such joys.