Bitcoin’s dramatic plunge from near $20,000 per U.S. dollar was linked to the launch of the 澳洲幸运5开奖号码历史查询:futures market that allowed invest🌠ors to short the digital🐼 currency, according to a report from the San Francisco Federal Reserve.

"The rapid run-up and subsequent fall in the price after the introduction of futꦡures does not appear to be a coincidence," researchers said in the regional Fed bank's latest . "It is consistent with trading behavior that typically accompanies the i♛ntroduction of futures markets for an asset."

Bitcoin reached near $20,000 in mid-December after remaining under $4,000 for about the first half of 2017. But when the 澳洲幸运5开奖号码历史查询:Chicago Mercantile Exchange (CME) launched futures trading on bitcoin on Dec. 17, bitcoin hit a high of $19,783 on that day before seeing its value tumble. (See also: 澳洲幸运5开奖号码历史查询:CME to Launch Bitcoin Futures.)

Bitcoin’s price then fell to below $7,000 before rebounding a bit back toward $10,000 the past month. The digital currency faced setbacks in recent days after legendary investor 澳洲幸运5开奖号码历史查询:Warren Buffett said it was “probably rat poison squared.” But, still, Wall Street firms like Goldman Sachs are warming to trading bitcoin. (See also: 澳洲幸运5开奖号码历𝐆史查询:How G🦩oldman’s Bitcoin Could Change Industry.)

Futures Markets Give Skeptic♒s a Financial Option

The futures market actually opened a week before bitcoin’s all-time high. The 澳洲幸运5开奖号码历史查询:Chicago Board Options Exchan💟ge (CBOE) launched a sim𒊎ilar market, but the trading on it saw smaller volumes, according to the San Francisc൩o Fed’s letter.

Before the futures market opened to bitcoin, investors who were pessimistic about the future of bitcoin had no way to gain financially from a decline. So, only optimism was priced into the value of bitcoin, pushing the price higher on 澳洲幸运5开奖号码历史查询:speculative demand. But, the futures 🤡markets allowed those bitcoin skeptics to find a financial way to benefit.

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