Trump Administration Popped 2017 Bitcoin Bubble, Ex-CFTC Chair Says
According to CoinDesk, the Trump administration acted to deflate the bitcoin bubble of 2017 by allowing the introduction of futures products, a former official said Monday, October 22.
In a speech at the Pantera Summit in San Francisco on Monday, Giancarlo elaborated further, saying Bitcoin’s dramatic price run-up in December 2017 was the first major bubble following the 2008 financial crisis. That’s why the Trump administration acted in concert to address it in a pro-markets manner, he said.
Bitcoin futures listed by the Chicago Mercantile Exchange (CME) and the CBOE Futures Exchange (CFE) were announced by the CFTC on Dec 1, 2017 and went live on Dec. 18. Bitcoin’s price peaked at nearly $20,000 one day earlier, on Dec. 17, before falling dramatically in subsequent weeks.
"We saw a bubble building and we thought the best way to address it was to allow the market to interact with it," Giancarlo told the crowd gathered at the Ritz-Carlton on Nob Hill.