If the Federal Reserve slashing interest rates to zero and starting a massive QE program cannot make Bitcoin (BTC) rally, what can?
This is the question that has been on the minds of those who watched the cryptocurrency collapse by more than 17 percent on the uberbullish news.
Fed cannot pump Bitcoin
Bitcoin’s major selling point was that it could hedge investors against another recession. However, the cryptocurrency miserably failed as a safe haven and suffered even a bigger drop than risk-on assets such as U.S. stocks.
It is worth mentioning that BTC did pop more than 15 percent on the news but its gains were violently erased. At press time, BTC is trading at $4,978 with more downside pressure in sight.
Is CME Group to blame?
Interestingly enough, eagle-eyed crypto analyst Alex Krüger noticed that Bitcoin (BTC) reversed its course right after Chicago-based futures behemoth CME Group started trading.
This is hardly a coincidence given that CME has a tremendous impact on the crypto market. Apart from a multitude of weekend price gaps that magically tend to fill, the institution was also credited with popping the Bitcoin bubble at the end of 2017.
The Bitcoin price tumbled shortly after CME launched Bitcoin futures after Cboe on Dec. 17, 2017.
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