Bitcoin [BTC] recorded a flash drop yesterday of over $500 (about 4.75%) in less than an hour. Before that, Bitcoin had gained about $300 on the daily scale. A good volume even accentuated the bullish momentum. However, towards the end of the day, it dropped vertically.
The price of BTC at 4: 30 hours UTC on 7th September 2019 is $10,340. It is trading 2.9% lower on a daily scale.
Since 30th August, Bitcoin [BTC] recorded five consecutive bullish days; the rise was attributed to its use as a safe haven. Moreover, one of the most robust catalyst during the time was the ‘Bakkt Launch.’ The much-anticipated bitcoin settled futures contracts backed by the NYSE is scheduled for launch on 23rd September.
Yesterday, it initiated the Bakkt Warehouse – the custody arrangement for Bitcoin. According to their update on Twitter,
Bakkt Warehouse custody is live.
Now accepting customer bitcoin deposits and withdrawals. Only 17 days until the Bakkt Daily and Monthly Futures contracts launch on Sep 23.
Bakkt is a Speculative Vehicle
While Bakkt brings a lot of innovation to the table, it is still purely a trading platform. The custody arrangement and Bitcoin settled contracts are upping the game for Bitcoin.
Furthermore, CME and other regulated and unregulated platforms like Six Exchange and BitMEX offer futures trading of Bitcoin as well. The leverage provided on BitMEX is up to 100x, which makes it highly lucrative for traders. Hence, including trading platforms, there are similar products and services to Bakkt are already in place.
The current bull market in Bitcoin reached a high of $13,800 on 26th August. Since then, it the investors and traders have been uncertain of its direction.
The 2017 bull market in Bitcoin ended with a high on 17th December. Bitcoin recorded an All-Time High of $20,000. Despite, the bubble characteristics and ICO hype, there was one other thing driving Bitcoin prices at the time – The CME Bitcoin Futures launch.
However, the launch on 18th December, the price of Bitcoin plummeted for four days straight by about $5000.
Nevertheless, Past performance is no guarantee of future results. This time around the launch could actually bring in a flurry of fresh institutional investors.
Do you think Bakkt launch will have a positive or negative effect on the market? Please share your views us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com