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Bakkt's Launch Might Have Caused Bitcoin's Crash

Bakkt, a Bitcoin futures contracts platform, went live on September 22. The platform seeks to alleviate fears exhibited by institutional and retail investors when interacting with virtual currencies.

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Notably, Bakkt and the New York Stock Exchange have the same owner, Intercontinental Exchange (ICE). Apart from eliminating crypto fears among traders, Bakkt seeks to make it easier and viable to pay using Bitcoin. 

Bakkt’s futures are physically settled, which helps the platform stand out from similar platforms such as the CME Group whose futures are cash-settled. Interestingly, physical futures settlement has been in use in other spheres such as metals, bonds, and oil sectors.

The platform’s first contract was initiated at a price of US$ 10,115. Unfortunately, shortly after launch, the price of Bitcoin dropped below the US$10K mark. 

Surprisingly, Bakkt failed to record high trading volumes as it was expected after a highly publicized launch date. This was seen as a dangerous sign that caused a severe drop in Bitcoin’s price.

Influential figures in the cryptocurrency world are divided; some say it’s still too early to feel Bakkt’s impact, and others blame the launch for the current Bitcoin price drop.

Despite the mixed reactions on Bakkt’s impact, it’s still too early to judge the platform’s strengths, weaknesses, and whether it has succeeded in convincing institutional traders to board the crypto train.

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Crypto Stats

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin59,488 0.19 % 0.32 % 4.25 %
Ethereum2,131.2 0.62 % 0.61 % 5.68 %
Binance Coin505.97 0.53 % 5.96 % 57.85 %
Tether0.9980 0.14 % 0.36 % 0.27 %
Polkadot43.88 0.58 % 0.43 % 36.39 %
Cardano1.270 0.22 % 4.55 % 8.86 %
XRP1.370 1.63 % 3.68 % 137.66 %
Uniswap30.24 0.53 % 1.62 % 2.48 %
Litecoin247.11 1.09 % 0.01 % 26.25 %
Chainlink33.63 0.72 % 6.86 % 14.74 %