The Federal Reserve Bank of San Francisco concludes that bitcoin-based markets are the reason for cryptocurrency price patterns.
The researchers from Stanford University and Federal Reserve Bank of San Francisco have revealed the reason for the Bitcoin markets dipped in value over the past four to five months.
In a blog post:
From Bitcoin’s inception in 2009 through mid-2017, its price remained under $4,000. In the second half of 2017, it climbed dramatically to nearly $20,000, but descended rapidly starting in mid-December. The peak price coincided with the introduction of bitcoin futures trading on the Chicago Mercantile Exchange. The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.