Dramatic fall in Bitcoin price correlates with introduction of futures, authors argue

The St Louis Fed
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It “does not appear to be a coincidence” that bitcoin prices fell rapidly after the introduction of futures for the digital currency, a paper published by the Federal Reserve Bank of St Louis says.

In a research note Galina Hale, Arvind Krishnamurthy, Marianna Kudlyak and Patrick Shultz argue the change in the crypto asset’s prices “is consistent with trading behaviour that typically accompanies the introduction of futures markets for an asset”.

From bitcoin’s inception in 2009 through to mid

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