Ex CFTC Chair: "Trump Administration Popped the Bitcoin Bubble in 2017"steemCreated with Sketch.

in #bitcoin3 years ago

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.”

(Source: https://www.coindesk.com/trump-administration-popped-2017-bitcoin-bubble-ex-cftc-chair-says)

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.”

(Source: https://www.coindesk.com/trump-administration-popped-2017-bitcoin-bubble-ex-cftc-chair-says)

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.



fuckin trump

Yea, though reading into it, it doesn't sound like he had much to do with it. Just people he may have appointed.

I think most will come to regret that BTC got involved with traditional trading platforms, exchanges and such. The whole point of crypto, at least in my opinion, was to break the back of government controlled fiat currency and let the people have a currency that was decentralized and uncontrolled by bankers and their government lap dogs. But, the lure of quick and easier money by letting the traditional machinery sink their claws in, it won't be long before they completely control crypto too...

I am not sure there was any "letting the traditional machinery sink their claws in"... I mean how could 'the people' have prevented it?

I agree that being decentralized, there is no real mechanism that could prevent cryptos from being absorbed into the existing system. But there were and are crypto influencers who, more for their personal benefit than for the benefit of all I think, who pushed for these types of inclusions, wanting cryptos to be another traded commodity. I understand it and I get why they would. It seems it may be a damned if you do, damned if you don't, no win scenario. But if crypto is going to change things, if it is going to escape the control of the powered elite, how can that happen if it comes under the control of the powered elite? I've seen for years how Market Makers, day traders and market manipulators have controlled the other financial exchanges, and I fear crypto will become just another tool to fleece the small player. I just think we will regret it in the end, wanting cryptos to become popular and more used by making them tradeable commodities through established systems, but robbing them of their power to change or replace those systems because the become absorbed into them and assimilated. Does that make sense?

To be honest, I don't think it will change things like many had originally hoped. I think that governments will not allow it to happen. I think that bitcoin will be 'allowed' to co-exist with the current financial system as an alternative investment that mostly works as a store of value. As soon as we start talking about replacing government controlled fiat, I think we are going to face an extremely difficult uphill battle. One that may not be winnable, at least anytime soon. I wish it were different, but that is how I see things playing out personally. Which is why I am not a big fan of the cryptocurrencies that are trying to compete with/replace fiat. Most likely fiat will just be digitalized.

All good points. The only thing is, I think we are heading right into a global conflaguration, and right quick. Derp Furor seems to be wanting to destroy Murika's reputation and strong holds around the world so that Putin, his idol, and Russia can slide right in and take over our hard won international influence, as well as our physical facilities and former command and control centers. He is aligning himself with the dicktaters of the world and, when he loses the next election, I'm sure he will try to start a revolution by stiring up the tiny minds of the animals who adore him, the sicko-fanatic Trumpanzees. Just today he called the Senators, like Mitt Romney, "human scum" for not pledging their blood and blind loyalty to him. No matter what happens, this cuntry will not continue on as it had before this moron. It will either be civil war, invasion from his dicktater allies from outside (after he dismantles our military's ability to defend the homeland effectively) or simply just a broken and divided cuntry, too infuriated within itself to accomplish anything.

This may seem negative, but I just watched a story about the Republicunts who just today stormed the SCIF that was being used for the impeachment hearings, brought their personal electronics and were recording and tweeting from within the SCIF (a HUGE no-no for anyone who knows anything about Congressional hearings). This clearly an illegal act, as it obstructed and purposely delayed a legal, proper hearing by sitting there and eating pizza. We have devolved into a pathetic, ridiculous, infantile joke where those who should be the best examples of honoring and following the law and the Constitution, do nothing but soil it and dishonor all laws and decorum. America is dead.

Tell me how you really feel! Ha. One thing to note in all of that... If the economy holds on through the election, history says the odds are overwhelmingly in favor of the sitting president getting re-elected.

Yeah, normally that's true. These aren't normal times, however. I believe we'll be shooting at each other before that. That little shit show in Congress today shows that there is little respect for the Constitution anymore in DC. Not from the ones crashing a SCIF and not from those who didn't have the crashers arrested or shot onsite for storming a legal proceeding in a top secret location. And now, Anus Orange says he wants to build a wall in Colorado...but not in Kansas. Ever see the movie "idocracy"? Our government makes the folks in that show look like MENSA geniuses in comparison. You could not write the stoooooopidity we have to endure everyday...no one would believe it. We are at boiling temperature and this will not end well, no matter what happens. Honestly, that's why I was hoping crypto would be a way to store value as it would not be under a centralized or government control and could survive an American implosion. Now, I'm not so sure it can or will.

Sounds about right.
Now the market is totally bottomed out.

It would be funny if the futures markets had the unintended effect of lowering volatility in spite of massive gains. Honestly though that combination automatically increases volatility because it draws more investors in until you get another FOMO bubble.

Perhaps. The interesting thing about allowing more shorts to enter the market is yes that it usually helps balance things out, at least initially, it also creates the potential for moves up to be magnified when there is a large stuck short position that is forced to get out all at once...

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