Fed Report: Bitcoin Futures Creation and Fall of Cryptocurrency Was No Coincidence

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-Bitcoin news, price, information & analysis Last December’s introduction of Bitcoin futures, which gave investors an opportunity to bet against the value of the coin, played a large role in the late-2017 and early-2018 price decline, according to the U.S. Federal Reserve. In the economic letter from the Federal Reserve Bank of San Francisco, published today May 7, the authors conclude that the rapid run-up and subsequent fall in the price of Bitcoin after the introduction of futures is far from a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset — a situation comparable to the securitization of bonds in the early 2000s. “The subsequent bust was driven by the creation of instruments that allowed pessimistic investors to bet against the housing market,” the Federal Reserve wrote. Fed Report: Bitcoin Futures Creation and Fall of Cryptocurrency Was No Coincidence

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