How Did the Market React to Wall Street's First Bitcoin Futures ETF? – Coinpedia Fintech News

  • Back in 2017, it was feared that Wall Street would use Bitcoin Futures ETF to manipulate the market.

  • A recent tweet from Whalewire appears to confirm these fears, as it shows a noticeable drop in Bitcoin’s price.

  • Tactics like spoofing and wash trading can be used to distort prices.

Cryptocurrency enthusiasts often hail decentralization as a safeguard against traditional market tricks. But recent insights from a Whalewire tweet paint a different picture. Let’s go back to December 2017, a crucial moment when Wall Street launched its first Bitcoin futures ETF.

In a bid to bridge traditional finance with the crypto market, December 2017 saw the debut of the first Bitcoin futures ETF. It was anticipated to be a game-changer, but the aftermath didn’t match the hype.

Bitcoin’s Wild Ride: Breaking Down the Chart

Whalewire’s tweet, armed with a revealing chart, exposes a noticeable drop in Bitcoin’s price after the ETF’s arrival. The big question: Did Wall Street use the futures market to play with prices, kickstarting a long-lasting bear market? This chapter fueled mistrust towards mainstream financial players.

Understanding the distinction between a spot ETF and a futures ETF is key. A spot ETF directly holds Bitcoin, reflecting real-time price changes. Meanwhile, a futures ETF deals with contracts predicting Bitcoin’s future price, adding complexities like leverage and contract expiration.

Also Read: Bitcoin Futures ETF Achieves Impressive $1 Billion Mark Amidst Fierce Spot ETF Battle

Market Tricks Revealed

The tweet and its graph not only raise questions about futures ETFs but also shine a light on vulnerabilities in spot markets. Tactics like spoofing (placing fake orders) and wash trading (trading with oneself) mess with true supply and demand, distorting price perceptions.

As we move forward, the crypto community remains skeptical of traditional financial entities introducing new products. The lingering question: Can the decentralized spirit survive the tactics of experienced financial players?

A Valuable Lesson Learned

Examining Bitcoin’s history amidst Wall Street’s involvement is a cautionary tale. It’s a story of power dynamics, market psychology, and the ongoing battle between decentralization and entrenched financial structures. The saga continues as the forces shaping Bitcoin’s destiny clash.

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