Former CFTC Chairman: The launch of futures has pierced the bitcoin bubble, and bitcoin prices are more easily manipulated

According to recent media reports, Christopher Giancarlo, chairman of the US Commodity Futures Trading Commission (CFTC), who stepped down in April last year, said the Trump administration believes that because bitcoin futures allow "institutional investors" not to hold In the case of Bitcoin, Bitcoin is shorted, so futures products drive down the price of Bitcoin.


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He said:

"If you really think this is an unreasonable price, but you don't have it, you can't express it."

He then added:

“An unknown story of the past few years, the US Commodity Futures Trading Commission, the Treasury, the US Securities and Exchange Commission (SEC) and the then National Economic Council director Gary Cohn agree that Bitcoin The launch of futures will puncture the bitcoin bubble. It seems that this is true.

I have communicated with the Minister of Finance, Steven Mnuchin, and the Director of the National Economic Council, Gary Cohen, and we agree that if Bitcoin futures continue to trade, institutional funds will be on the spot market. The price has an impact.

The signs of bitcoin futures manipulating prices have become very obvious, just before the expiration of the last Friday of this month, bitcoin prices have fallen. Subsequently, this recognition by Giancarlo attracted widespread attention.

Unlike physical futures, which are traded at a fixed price today, and the physical bitcoin is delivered one month later, the Chicago Mercantile Exchange (CME) bitcoin futures will not lock in prices and do not need to pay physical bitcoins.

Instead, the dealer can make a bitcoin price without holding Bitcoin or touching Bitcoin.

Since such futures have nothing to do with Bitcoin, you might think that they will not affect the price of Bitcoin. So why does the Trump administration think they will drive down the price of Bitcoin?

Giancarlo did not give a specific explanation, but the design structure of the Chicago Mercantile Exchange is unreasonable because its complicated detection price manipulation program only runs for one hour, and the price may not be manipulated during this hour, but in other For 23 hours, “institutional funds” can easily manipulate the transaction price of Bitcoin on the exchange.

This opened the way for the emptying of commodity trading in Chicago. In the fall of October 23, they sold Bitcoin in just four minutes, causing bitcoin prices to fall slightly.

It is very strange that this is legal. Since Bitcoin products do not grow as tangible as agricultural products, actual delivery is not as difficult as gold, so it is not clear what the futures use is.

For example, the Chicago Mercantile Exchange does not have futures for Apple stocks, because the stock itself can be bought and sold, and it is not so easy to trade sheep or gold in a way that is actually owned.

Therefore, it can be said that Bitcoin futures only played the role of manipulating prices, and this seems to be the intention of the Minister of Finance.

However, it is unclear whether this is the temporary impact of Bitcoin's own design, but one thing is clear: the regulators collude, manipulate market prices, and allow virtual holiday goods instead of real Bitcoin ETFs, which seems to indicate that For Trump, the current situation is not good.