How President Donald Trump's Administration Deflated Bitcoin's 2017 Bull Run

Former U.S. Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo comments on the acts of the President Trump’s administration (along with the SEC and Treasury) to deflate the bitcoin and cryptocurrency market bull run due to opening up Futures product offerings.

The trump administrator deliberately popped the $20,000 Bitcoin bubble of 2017, by allowing the launch of Bitcoin features on CME and CBOE. It is according to Christopher Giancarlo, the former commodity and futures trading commission chairman. The treasury, Sec, and National Economic Council director at the time believed that the launch of the Bitcoin features would pop the Bitcoin bubble. It worked according to Giancarlo.

Facts Behind The CME And CBOE Features Popping The Bubble

The existing Bitcoin shortlisting platforms couldn’t pop the bubble because CME and CBOE weren’t the first places to shot the Bitcoin. BitMex was founded in 2014 though CBOE and CME were the first to offer regulated Bitcoin trading platforms. eToro offers Bitcoin CDFS, which allows short selling since 2014, but couldn’t pop the bubble either because it was more oriented towards retail traders.

How Bitcoin Futures Work

Bitcoins were added to CBOE and CME in 2016, and this was a significant step in validating digital currencies and protecting them from swindling. Future contracts are priced based on market demands and asset prices. You can either hedge current Bitcoin investment or profit from Bitcoin without holding Bitcoins in your account. Using the hedging feature is common in volatile assets, to protect them from significant losses. You can purchase a contract for a future date and indicate the option for instant profit when the cost rises above your feature price. This method is associated with lower risks.

How CBOE and CME gives Bitcoin Legitimacy

Putting Bitcoin in the premier option exchange will legitimize the entire cryptocurrency system. Cryptocurrencies that show up on CBOE and CME are likely to stick around, avoiding a significant drop to zero. CME began trading Bitcoin features in 2017 and has traded nearly 7,000 future contracts on average daily.

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Daniel W
Daniel W
Daniel Wambugu writes daily cryptocurrency and blockchain related articles BitcoinExchangeGuide. His articles have appeared in numerous blogs, media publications, and community forums. He prides himself on once being a beginner and uses his experience to deliver high-quality insightful content for our dear readers. With a knack for reviewing ICOs or researching news, Daniel plans to continue being a top contributor for many years to come.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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