Cryptocurrencies
JPMorgan Says ICE Debut, Position Shakeout Likely Tanked Bitcoin
- New futures may allow for easier expression of bearishness
- Some position liquidation on CME, Bitmex may have fueled drop
Photographer: Dan Kitwood/Getty Images
This article is for subscribers only.
Bitcoin’s 20% drop earlier this week was likely fueled by the effect of Intercontinental Exchange Inc.’s new futures contracts and an unwinding of long positions, according to JPMorgan Chase & Co.
The cryptocurrency’s plunge, its biggest in a week since last November, took it from around $10,000 to a close Friday of $8,061. Though the strategists led by Nikolaos Panigirtzoglou were quick to point out that the introduction of physically delivered futures was a further step to maturity for the market, they said it probably depressed prices.