Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
FRBSF Economic Letter
How Futures Trading Changed Bitcoin Prices
Galina Hale
Arvind Krishnamurthy
Marianna Kudlyak
Patrick Shultz
Abstract

From Bitcoin’s inception in 2009 through mid-2017, its price remained under $4,000. In the second half of 2017, it climbed dramatically to nearly $20,000, but descended rapidly starting in mid-December. The peak price coincided with the introduction of bitcoin futures trading on the Chicago Mercantile Exchange. The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.


Download Full text
Cite this item
Galina Hale & Arvind Krishnamurthy & Marianna Kudlyak & Patrick Shultz, "How Futures Trading Changed Bitcoin Prices" , Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 12, 2018.
More from this series
JEL Classification:
Subject headings:
For corrections, contact Federal Reserve Bank of San Francisco Research Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal