Is the introduction of futures responsible for the crash of Bitcoin?

【Author】 Liu Ruozhou; Wan Shanfeng; Zhang Zili; Zhao Xuejun

【Source】FINANCE RESEARCH LETTERS

【影响因子】9.848

【Abstract】The price of Bitcoin reached its peak a mere few days after the introduction of Bitcoin futures and suffered an 80% loss in the following year. In this paper, we find a significant and negative relationship between the introduction of Bitcoin futures and Bitcoin returns, and an insignificant or positive relationship for other 7 major non-Bitcoin cryptocurrencies. Within the first 45 days after the futures launch, Bitcoin suffered a -26.50% loss, while other cryptocurrencies could still provide positive returns. We presume that the launch of Bitcoin futures was to an extent responsible for the crash of Bitcoin.

【Keywords】Bitcoin; Cryptocurrencies; Bitcoin futures; Market crash

【发表时间】2020 MAY

【收录时间】2022-01-02

【文献类型】

【主题类别】

--