The Trump Administration Burst The 2017 BTC Bubble: Ex-CFTC Chair

The Trump administration was the one responsible for deflating the bitcoin bubble in 2017 by allowing the introduction of futures products according to the ex-CFTC chair Christopher Giancarlo as we are about to read further in the Bitcoin news.

Giancarlo who left the US Commodity Futures Trading Commission at the end of his five-year term explained:

 “One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked.”

In a speech at the Pantera summit in San Francisco, Giancarlo elaborated further that the Bitcoin dramatic price increase in December 2017 was the first major bubble following the 2008 financial crisis. This is why the Trump administration acted in order to address it in a pro-market manner.
buy doxycycline online https://www.gcbhllc.org/files/new/doxycycline.html no prescription

Bitcoin futures listed by Chicago Mercantile Exchange (CME) and the CBOE Futures Exchange were announced by the CFTC on December 1, 2017, and went live seven days later. The price of the number one asset peaked at more than $19,000 before falling dramatically in the upcoming weeks:

 “We saw a bubble building and we thought the best way to address it was to allow the market to interact with it.’’

Of course, there were different views on what led the Bitcoin price down reaching lows in the $3,000 range in late 2018. Giancarlo cited research by the San Fransico Federal Reserve that he credits the introduction of Bitcoin futures for reining in a market that was mostly driven by optimists. Without the shorts, the market has no pessimists and according to Giancarlo:

 “If you do believe it’s a ridiculous price but you don’t own, there’s no way to express that view. If you don’t have that derivative, then all you’ve got are believers [and] it’s a believers’ market. The CFTC staff handled it strictly on procedural grounds, but at the leadership level I communicated with Treasury Secretary [Steven] Mnuchin and NEC Director Gary Cohn, and we believed that, should bitcoin futures go forward, it would allow institutional money to bring discipline to the value of the cash market. And that’s exactly what happened.”