Researchers at the San Francisco branch of the U.S. Federal Reserve Bank (FED) have taken a scientific paper review and reviewed the reasons for Bitcoin’s price drop over the past five months.According to the result, launch of bitcoin futures is one of the most important causes of decline.
A financial professor at Stanford University and a co-signer of the FED’s three researchers in the San Francisco Division, and posted on Monday with readers, Bitcoin’s price pattern shows similarities with the mortgage ‘balloon’ that broke out in the US in 2000.
In the article, it is stated that the serious price decline in Bitcoin is an important factor in futures opened on Bitcoin.
Remember, the CBOE and the CME Group have spent the day at the end of 2017 to draft futures on Bitcoin, and the CFTC-approved institutions have begun futures. Bitcoin prices are at the highest levels of history and 20 thousand dollars while the futures on Bitcoin are open, and when the first week of February is reached, the price is almost 6 thousand dollars.
In the article, it is argued that the significant increase in the price of Bitcoin and the serious shortfall in the same short term in the light of the collected data and the calculations made are related to futures, which also influences the price dynamics.
The price dynamics are deliberately mentioned as follows:
“And until December 17, those investors [optimists] were right: As with a self-fulfilling prophecy, optimists’ demand pushed the price of bitcoin up, energizing more people to join in and keep pushing up the price. The pessimists, however, had no mechanism available to put money behind their belief that the bitcoin price would collapse. So they were left to wait for their ‘I told you so’ moment.”
The authors of the Bitcoin mining protocol argue that every day will make it easier for Bitcoin to take its place in the industry as a form of payment; with the disappear of speculative dynamics in the sector.