At the beginning of this year, the Federal Reserve had published an article on its official website which stated that the decline in bitcoin prices is due to the launch of CME Bitcoin Futures.
History is the proof
Bitcoin reached its all-time high last year in December, when the price of bitcoin reached around $ 20,000. However, on December 17 last year, the price started a bearish rally shortly after the launch of CME Bitcoin Futures. When the Bitcoin Futures CMEs were launched, the starting price was around $ 20600 per bitcoin, dropped to around $ 19,000 on the first day.
According to the Federal Reserve, the fall in prices has been observed not only in cryptocurrencies like bitcoins but also in other activities when futures markets are introduced. As mortgage bonds were introduced, the mortgage industry boom was reversed. Similar things are also happening with bitcoins.
According to the Federal Reserve, the price of bitcoin would have risen above $ 20,000 to date if the CME had not launched its bitcoin futures in December of last year and the FED blames CME Bitcoin Futures for the collapse of the bitcoin market.
The Bitcoin Futures distract investors because CME bitcoin futures are settled in cash and no real bitcoin supports them. Therefore, investing in bitcoin futures decreases the spot demand for bitcoins, causing the price to fall.
What do you think about CME Bitcoin Futures? Do you think the Federal Reserve is right? Are future bitcoins the real cause of the market crash? Tell us your thoughts in the comments section below.