A strategy guide for the Netherlands’ central bank has asserted that Bitcoin price changes match with Google search for the cryptocurrency, CNBC reports Friday, August 31.
In a meeting with the network Wednesday, De Nederlandsche Bank’s Joost van der Burgt said that the trend moved toward becoming clearer last December with the approach of the first Bitcoin futures hitting the market.
“Every time Bitcoin was in the news, be it positive or negative, the price went up accordingly,” he said.
Bitcoin’s inability to make up for losses which started in the last weeks of 2017 has started different speculations about its future prospects from traditional finance circles.
Coming back to the subject of the Bitcoin “bubble,” figures, for example, financial experts Nouriel Roubini and Robert Shiller have made repeated claims during this time the biggest cryptocurrency can’t manage higher costs for long.
Van der Burgt too proposed the blasting of this “bubble” might not have yet completely happened.
“My take on it is that because of the introduction of futures, that might have deflated the bubble before it got to a level where it might burst completely,” he included.
Van der Burgt has not taken an anti Bitcoin position. In an April report for the Federal Reserve Bank of San Francisco, in which he talked about the Bitcoin bubble utilizing Hyman Minsky’s financial unsteadiness record, the investigator did not expel the thought Bitcoin could represent a real innovation.
“Then again, maybe Bitcoin is different than anything we have seen before, and maybe a decade from now its market capitalization will be sky-high as it attains the status of a new global currency,” he considered in the ending comments.