In an October 23 interview with CoinDesk, a former CFTC official actually admitted that the launch of futures products was designed specifically to stop the Bitcoin price from getting out of control. Christopher Giancarlo of the CFTC stated that:
“One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the NEC [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.”
The implications of this are massive and the crypto sphere is outraged. The CFTC, Treasury, NEC, and SEC actively set out to destroy Bitcoin, a technology that is designed to replace fiat currency and end government corruption. As the former official said, it worked flawlessly.
Immediately after the launch of CME Bitcoin futures on December 17th, the Bitcoin price tanked from $19,800 and never recovered. With the more recent launch of Bitcoin futures contracts on the Bakkt exchange, the Bitcoin price dropped 20% within 4 days
The level of corruption and illegal activity is off the charts. The Federal agencies responsible for regulating the market designed products to manipulate the market for their own interests. And it is now out in the open. These Federal agencies have destroyed the wealth of hundreds of thousands of people so that the fiat money system can continue.
“We saw a bubble building and we thought the best way to address it was to allow the market to interact with it”.
Of course, the bubble is actually around the US dollar, and Bitcoin is designed to burst this exact bubble. But Giancarlo is twisting it so that it looks like it was meant to assist the populace, instead of preserving the elites.
Bitcoin is designed to be a pure form of money to replace government money that is printed at random. With the introduction of futures contracts, what happens is that fiat money can be used to buy these products. In this way, it is possible to manipulate and contaminate the Bitcoin price.
This is because these products are cash-settled, not physically settled. A physically settled contract would mean that the Bitcoin has to change hands at the end of the contract, keeping the asset pure and the market stable. But without a physical settlement, whales can place million-dollar orders for Bitcoin without any delivery, and disrupt the price in a corrupted market.
In this manner, futures products make it easy to manipulate the Bitcoin price using printed fiat currency – which the governments can simply print more of in order to suppress the price over and over.
How the Bitcoin price will fare in 2020 is anyone’s guess. However, there has been an increase in favorable sentiment from the Chinese government and large companies and institutions such as Alibaba and TD Ameritrade. Perhaps they cannot suppress the Bitcoin price any longer.