Cryptocurrency market decline on Sunday, June 10.
Today the Bitcoin price in a matter of hours collapsed by almost 5%. Some analysts attribute this to the fact that US Futures Trading Commission (CFTC) demanded from Coinbase, Kraken, Bitstamp and itBit to provide data on trading after the launch of bitcoin futures.
Cryptocurrency Market Decline
So, the Bitcoin price collapsed by 4.83%, while the altcoins declined more: Ethereum – by 5.69%; EOS – by 9.84%; IOTA – by 12%. Market cap lost another $ 15 billion and reached $ 324 billion.
However, there are other opinions about cryptocurrency market decline. In particular, some analysts say that there is no difference between these “phenomena”, because the CFTC demanded data on June 8, and the rates began to fall only today.
CFTC Investigation
We remind, CFTC required several cryptocurrency exchanges to provide extensive data on trades. Regulators requested information to clarify the issue of possible Bitcoin price manipulation.
The investigation followed the launch of CME Group Bitcoin futures in December last year. CME forms the prices for futures contracts based on the data of four cryptocurrency exchanges – Bitstamp, Coinbase, itBit and Kraken, where manipulation with prices could distort the cost of BTC futures. The CFTC is investigating trading schemes that can be used to manipulate the price of futures directly regulated by the authorities.
After settlement under the first contract in January, CME requested four exchanges to provide trading data. However, some of the exchanges refused to cooperate, saying that it was an intrusion into their operating. The sites transmitted their data as soon as the CME reduced the time interval of its request from one day to several hours.
According to The Wall Street Journal, CME initially sought information through an outside London company that calculates BTC price for its futures contracts. Sources added that the cryptocurrency exchange did not want to transfer data to a British firm that also operates its own trading platform.
WSJ reported that CFTC were disappointed that CME did not have agreements that oblige crypto exchanges to share data on prices associated with futures contracts. According to WSJ sources, the quarrel between CME and crypto exchanges has stimulated the CFTC to open an investigation of this issue.
