First Bitcoin Futures Contract (Part 4)

I am writing on this topic in the last three posts. This is the fourth part on this topic. In this post I would like to share about the immediate impact of this groundbreaking event in the history of bitcoins price. We cannot go to December 2017 but we can have some data from the past to analyze the event. So let's see the impact of this future contract creation in the price of Bitcoin in December 2017.

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In the days leading up to the launch of Bitcoin futures, the price of Bitcoin soared, touching nearly $20,000 by mid-December 2017. The excitement around the futures launch created a rush of demand as investors saw the new product as a sign of Bitcoin’s growing legitimacy. But interestingly shortly after the launch, Bitcoin's price began to decline. Some analysts suggested that the introduction of futures allowed large institutional investors to short Bitcoin for the first time. This is created by one kind of price correction as said by the experts. By the end of 2017, Bitcoin’s price had dropped significantly from its all-time high, and by early 2018, the crypto market as a whole entered a prolonged bear market that would last for several years. But the price can be treated as the corrected price after that event.

There may be some other factors at that time because we cannot go to the past to understand the situation from the fundamental and technical point of view. Despite this immediate downturn, the launch of Bitcoin futures was seen as a positive development in the long term. The price and the market of Bitcoin in recent days we can easily thanks to that event in 7 years back. This introduction of future contracts introduced Bitcoin to a much wider audience and brought it closer to the world of traditional finance. That's the reason the event is remarkable in the history of Bitcoin.

~ Regards,
VEIGO (Community Mod)

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