According to the FED and many prominent economists in the field, the strongest rally for Bitcoin in early 2018 when the largest cryptocurrency was touching $20,000 was killed by the introduction of Bitcoin futures.
This is what led the market to crash and what caused “the third worst correction in Bitcoin’s history” according to the economists.
One of them is Yukio Noguchi, who is a Japanese economist. In a recent column, he claimed that the abrupt change in trend from a bull market to a strong bear cycle was triggered by the launch of CBOE and CME bitcoin futures market in December 2017.
If we go back in time, the total market cap surged to $900 billion in valuation and the price of Bitcoin achieved $20,000 while the price of Ether broke $1,400. However, in January these prices started to drop, recording 70% correction within a seven-month span.
According to Noguchi, the correlation between the fall in the price of cryptocurrencies and the futures market was not a coincidence. As he claimed, the Bitcoin futures market was the main contributing factor to the 2018 correction.
Noguchi said “Because it’s now possible to trade on bitcoin futures, you’ll never see a rapid surge again,” and with that predicted that the market will not be able to see a rapid development in the price of Bitcoin soon.
There are many analysts who think the same about the futures market and its impact on the cryptocurrency sector. Some even claimed that due to the fixed amount of long and short contracts that exist on that market – it is not possible to manipulate a market that is wort ha few hundred billion dollars.
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