The launch of futures on bitcoin to the end of 2017, played a role in the subsequent movement of its course. This is stated in the economic letter published by the Federal reserve Bank of San Francisco.
According to the document, the rapid rise and subsequent decline of bitcoin prices correspond to the traditional behavior of the market of the asset after the launch of futures based on it. A similar situation occurred, for example, with bonds in the early 2000-ies.
“The emergence of the blockchain allowed to introduce a new financial instrument — bitcoin. At his height put optimistic investors, has not yet been launched futures, which are allowed to enter the market pessimists that played a role in turning the dynamics of bitcoin prices”, — stated in the message.
CBOE and CME launched futures on bitcoin in December 2017. At the same time, the first cryptocurrency has reached a historic high above $20 000, and then returned to around $6 000 at the beginning of February.
The report’s authors argue that the launch of futures end “one-sided demand of speculators”.
“The key factor that will determine the bitcoin price in the long run, will be its role as a means of transaction-not confined by state boundaries and low commissions, while speculative will gradually lose its value”, — the document says the fed’s San Francisco.
Recall that in early April a member of the Board of governors of the Federal reserve Governor Lael Brainard speak called bitcoin and other cryptocurrencies “extremely volatile”, but made clear that this new asset class does not create a threat to the stability of the American economy.
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