Ex CFTC Chair: "Trump Administration Popped the Bitcoin Bubble in 2017"
A person in the know says the Trump administration actively worked to pop the Bitcoin bubble
Wow. Just wow.
According to the former CFTC Chairman, Christopher Giancarlo, who left after serving his 5 year term this past April, those at the CFTC, the SEC, the Treasury, and NEC Director all thought approving the bitcoin futures product would work to pop the bitcoin bubble...
“One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked.”
Wow, that sounds almost unbelievable, but wait, there's more...
Further elaborating, Giancarlo added this:
“We saw a bubble building and we thought the best way to address it was to allow the market to interact with it."
"The CFTC staff handled it strictly on procedural grounds, but at the leadership level I communicated with Treasury Secretary [Steven] Mnuchin and NEC Director Gary Cohn, and we believed that, should bitcoin futures go forward, it would allow institutional money to bring discipline to the value of the cash market, and that’s exactly what happened.”
At that time, bitcoin was a market mostly without short sellers. It was difficult to short bitcoin and consequently, the optimists/believers were in control.
According to Giancarlo it was a believers market and without adequate tools for pessimists to participate, there was really only one way for prices to go with the believers fully in control.
And instead of outright intervening, they decided they wanted to let the markets do it.
They thought if there were products out there that would let the pessimists voice their beliefs, that the bitcoin bubble would likely be popped.
They were right.
The price of bitcoin peaked the day before the CME launched their bitcoin futures product.
Bitcoin peaked just shy of $20k on Decemeber 17th 2017 and the CME launched their futures product the next day on December 18th 2017.
There has been a ton of speculation that the release of those products helped cause the 2018 bear market, but now we are getting undeniable proof that those products were allowed to launch with the goal in mind of popping the bitcoin bubble.
And it was also probably them that helped run the price up in the first place in the weeks leading up in order to drop it from as high of a point as possible.
Again, just wow.
Stay informed my friends.