A couple of analysts reckons that the bitcoin futures market eventually led the impetus in the cryptocurrency bearish market.

Majority of the cryptocurrencies’ prices, such as BTC, ETH, LTC, XLM, and EOS have crashed and record the one of the worst correction in its history.

The abrupt shift in trend from a bullish market to a strong bear cycle was observed ever since the launch of the CBOE and CME bitcoin futures market in December 2017.

Late last year, the cryptocurrency market reached its all-time high to 20k and surging to $900 billion in valuation. One can’t rule out that the real impact of Bitcoin futures was the price of bitcoin, achieved $20,000 during its announcements of CME introducing futures contracts and the price of ether broke $1,400. But, in January, the price of cryptocurrencies started to drop, eventually recording a 70 percent correction within a seven-month span.

Investors like BitMEX CEO Arthur Hayes stated that because cryptocurrency market is still at its growth stage and it has risen by more than 300 percent in a year, investors have to expect 70 to 80 percent corrections as they are natural.

However, few analysts reckon that the correlation between the drop in the cryptocurrency price and the futures market was not merely a coincidence, claiming that the bitcoin futures market was the main contributing factor to the 2018 correction. Bitcoin (BTC) still managed to add $500 within days, showing that falling through the $5,800 level is delayed, at least in the short term. BTC saw enough optimism over the weekend to recover the $6,300 level.

The scepticism still lingers that the cryptocurrency market won’t be able to foresee a drastic development in price ever again, due to the existence of the futures market.

BTC ETF has been one significant aspect that would, perhaps, herald the inflow of institutional funds into crypto-avenues. While there may be abundant BTC to invest in. The printing of USDT may not suffice, and neither can be the creation of TrueUSD (TUSD) tokens, where the supply is also apparently driven by real fiat investments.

For Bitcoin, the institutional money inflow in a fully legalized asset like an ETF would be an indication of authenticity. Some traditional finance firms have made forays into Bitcoin, but those were mostly small-scale test investments. Courtesy: Cryptovest

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