Why did Bitcoin plunge by 20% earlier this week?

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 and Co.

The cryptocurrency’s plunge, its biggest in a week since last November, took it from around $10,000 (€9,140) 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.

“It may be that the listing of physically settled futures contracts [that enables some holders of physical Bitcoin, for example miners to hedge exposures] has contributed to recent price declines, rather than the low initial volumes,” JPMorgan said in the report…