Bakkt Hits a New ATH While Bitcoin Struggles to Cross $9,000

Bakkt

Bakkt Hits a New ATH While Bitcoin Struggles to Cross $9,000

While Bitcoin price struggles to reach the $9,000 mark, Bakkt Bitcoin Futures have hit a new all-time high (ATH) 0wing to institutions taking long positions on Bitcoin via other regulated contracts.

Will Bitcoin Dip Below $8,000?

Speculations are rife that Bitcoin will further drop to the $8000 range. Interestingly, the price drop has brought in some positive developments for the Bakkt platform.

As per a recent tweet by Bakkt Volume Bot, leading derivatives market data provider reported that Bakkt saw 1,741 BTC worth contracts being traded on Friday. This converts to $15.5 million and has been Bakkt’s largest trading day in a span of 2.5 months.

Source- Bakkt Bot

While a daily average of $15.5 million is not groundbreaking, it is indeed a big development for Bakkt. It is likely that with time the latter will manage to establish trades worth hundreds of millions in a day. However, the fact that Bakkt Bitcoin futures are undergoing steady growth makes up for an interesting case.

Leading Derivatives Exchange Record High Volume

The primary reason being Bakkt’s high volume is that institutions are starting to build long positions of Bitcoin through other regulated contracts. A few days back Chicago Mercantile Exchange’s Bitcoin futures market hit a one-month high. Contracts worth 1,300 BTC were traded. As a matter of fact, the numbers of contracts being traded are up by 5x from the 250 BTC bottom noted in late September.

Source- Twitter

Institutional interest in CME Futures saw a spike from 2,873 contracts in Q3 2018 to 5169 open contracts as of Nov. 4. Long BTC futures, in particular, have waded through tough waters in the past 3 months, starting at 180 contracts at the start of August and peaking at 805 contracts in September as BTC’s price dropped below $10,000 USD from its July highs.

Are Bakkt clients selling Bitcoins?

Twitter user, Joe Penman noted that every time there is a price dump, Bakkt established a new high. Interestingly, his belief is that the price drop is due to Bakkt clients selling Bitcoins.

Source- Twitter

Another Twitter user with the username “Dosa” seemed to agree with Penman and said that it is simply for building selling pressure. The idea is to buy at $8895 and thus set a limit order to $8,950. As the price drop to $6000, hoard more Bitcoins, remove the limit sell orders and then make profits.

Source- Twitter

 

Su Zhu, the chief executive of Three Arrows Capital is of the opinion that increasing institutional investments should lead to a price rise. He further said the present scenario resembles the 2017 price surge and thus leads to a possibility for a dip down to $8,000.

Will Bitcoin price manage to climb $9000 before year-end and maintain it? Let us know, what you think in the comments below!

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Bakkt Establishes New ATH While Bitcoin Struggles to Cross $9,000
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Bakkt Establishes New ATH While Bitcoin Struggles to Cross $9,000
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While Bitcoin price struggles to reach the $9,000 mark, Bakkt Bitcoin Futures have hit a new all-time high (ATH) 0wing to institutions taking long positions on Bitcoin via other regulated contracts.
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Author: Supriya Saxena

Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.

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Supriya Saxena 198 Articles

Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.

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