2018-7-2 02:49 |
A famous economist in Japan, Yukio Noguchi, recently wrote in an article that the prices of Bitcoin would not surge rapidly again as they did in December of 2017. An advisor to Waseda University’s Business and Finance Research Center, he noted that the advent of Bitcoin futures will not let prices rise so quickly ever again.
Bitcoin Futures to BlameNoguchi stated that “because it’s now possible to trade on Bitcoin futures you’ll never see a rapid surge again.” He clarified his point by stating that the fall in Bitcoin prices in January, which has continued throughout 2018, is because of the introduction of Futures contracts in the industry. The coin is merely a third of its value since hitting all-time highs in December 2017.
San Francisco Feds Believe the SameThe Federal Reserve Bank of San Francisco published a paper on May 7 titled “How Futures Trading Changed Bitcoin Prices,” made a similar point.
A passage from the paper suggested:
“From Bitcoin’s inception in 2009 through mid-2017, its price remained under US$4,000. In the second half of 2017, it climbed dramatically to nearly US $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.”
Noguchi also mentioned that forking currencies lead to people believing that they are getting coins for free, which will also keep the price of the primary coin down. However, he also suggested that a drop-in price means Bitcoin becomes more attractive for “sending money.”
Japanese Economist Argues That Bitcoin Prices Won’t Surge Again Rapidly was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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