Dutch Central Bank Consultant: Futures Saved Bitcoin Bubble From Excessive Inflation
A Dutch central bank consultant believes there is a correlation between Bitcoin price changes and the number of cryptocurrency-related requests on Google. In a conversation with CNBC, Just van der Burgt said the trend became more visible in December last year, when the first bitcoin futures entered the market..
“Every time bitcoin appeared in the news, whether positive or negative, its price changed accordingly,” he said..
The decline in the price of bitcoin, which began shortly after the advent of futures, has led to the emergence of various theories explaining how these events could be related. Economists such as Nouriel Roubini and Robert Schiller have repeatedly stated throughout the year that Bitcoin is unable to hold on to higher levels and will certainly fall to $ 100 or below, even if that happens 100 years from now..
Van der Burgt thinks bitcoin bubble didn’t burst, but deflated significantly after peaking in December last year.
“I believe that the launch of futures could have knocked down the bubble before it had time to reach levels where it would be threatened with a complete collapse,” – said the analyst.
Van der Burgt is not an opponent of Bitcoin, unlike the aforementioned economists. In April, he prepared a report for the Federal Reserve Bank of San Francisco, in which he highlighted the problem of the bitcoin bubble in the context of the Hyman Minsky Financial Instability Index and admitted that cryptocurrency could be a unique innovation..
“And once again, maybe Bitcoin is different from everything that we have seen before, maybe in a dozen years its capitalization will reach sky-high heights, while it itself will become a new global currency,” wrote Van der Burgt.