Bitcoin and other major cryptocurrencies have begun the new week on a very positive note, thanks in part to the very positive news coming from physically-settled bitcoin futures market Bakkt. Crypto traders were treated to a sea of green in the market today as Bitcoin, and indeed most other coins recorded impressive day-on-day gains which ended last week’s poor performances and notable price dips. In cryptocurrency news today, we reflect on the impact the latest Bakkt announcement and the Bakkt futures market will have on the price of bitcoin and other cryptocurrencies.
Bakkt Announces Approval; Reveal September Launch Date
After her company obtained approval from the U.S. Commodity and Futures Trading Commission, the CEO of Bakkt, Kelly Loeffler announced in a blog post that it would proceed with its highly-anticipated launch on September 23, 2019.
“That vision [to bring institutional infrastructure to digital assets with an end-to-end regulated marketplace] will be realized on September 23 when Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.”
As Smartereum reported in March, the commission said that it had its focus on Bakkt and other cryptocurrency-related proposals. The response came as the cryptocurrency community became worried over the excessive delay in the launch of the unique bitcoin futures market attributed to its regulatory approval process. Plans to launch Bakkt, which is a subsidiary of the Intercontinental Exchange (ICE) which operates the New York Stock Exchange (NYSE), was originally announced last year to the excitement of crypto fans and is widely expected to stimulate the crypto markets.
Bitcoin Price Update – BTC to USD
Since the Bakkt announcement on Friday, bitcoin (BTC) price has gained more than $1,000. Recall that the price of BTC came below the $10,000 mark on brief occasions last week but has managed to return to comfort above the psychological support. At the time of writing, bitcoin is trading at $10734.96 according to data from CoinMarketCap. This 3 percent gain day-on-day, is dampened by the fact that BTC is trading more than 5 percent than it did a week before. However, with positive movements on the hourly charts and good fundamentals around bitcoin, BTC price looks likely to rally further in the coming days.
How Bakkt Will Affect the Bitcoin Market – BTC Price Prediction 2019 – Bitcoin Price Forecast
Bakkt is often seen as the poster child of institutional involvement in cryptocurrency, a phenomenon that analysts agree will spur the next era of sustained cryptocurrency boom—or the bitcoin bull run. It is easy to see why. The project holds the promise of injecting huge institutional funds into the bitcoin market, albeit indirectly through its futures market. Interestingly, Bakkt differs from other BTC futures available as it is settled in bitcoin itself—which is to say, bitcoin actually changes hands. The operators have also received approval from New York regulators for its bitcoin custody service with insurance covering worth $125 million.
Through the power of speculation, Bakkt has rallied the bitcoin market more than once but the question remains, “how will Bakkt futures change the bitcoin market for good?”
Institutional Involvement Has Silently Boosted the Bitcoin Market – BTC News Today – BTC Price Analysis
According to crypto analyst Scott Melker, the gains of Bakkt, as well as that from institutional investments, is on clear display. Arguing that the Bakkt news is the most bullish event for institutional investors I the history of bitcoin, he wrote:
“Many of us said that this bull run was different, because it happened without retail interest or fomo. Price rose steadily from 3200 to 14K without media hype. Our hypothesis was that it was a result of institutional investment. I think that hypothesis was correct.”
But not everyone is as optimistic as Melker.
Bakkt May Not Bring the Bitcoin Bull Run As Expected – BTC Price Prediction
As earlier reported by Coindesk, another cryptocurrency trader who goes by the pseudonym NekoZ, aired an “unpopular opinion” that the Bakkt futures might diminish the bitcoin price rather that increase it. He warned fellow traders not to be deceived by transaction volume figures which will likely improve with the introduction of Bakkt. NekoZ tweeted:
“Unpopular opinion: Bakkt futures launching could mean further $BTC suppression and potential price drop. Big money coming in doesn’t necessarily translate to ‘buy or sell.’ Volume is volume, don’t express your bias towards it.”