Is Bakkt To Blame For Bitcoin’s Current Price Drop?

Is Bakkt To Blame For Bitcoin’s Current Price Drop?

According to a report first published on Bloomberg, analysts working for the US’ giant investment bank JP Morgan are blaming the recent drop in Bitcoin’s price on Bakkt’s recent release of physically-derived Bitcoin futures.  The 20% drop, which was the most significant since November 2018, resulted in the top cryptocurrency trading at around $8,061 on major exchanges.

The report goes on to quote market strategists, such as Nikolaos Panigirtzoglou who stated that this price drop is not necessarily the market reacting badly to this new financial instrument. Instead, Panigirtzoglou suggests that this innovative product will help cryptocurrency come of age, and the markets were simply adapting to this reality.

ICE Performance Disappoints

The futures contracts which payout in Bitcoin issued by Bakkt and the NYSE’s owner, ICE, performed lower than expected during their first week of trading. These low trade volumes are what many in the crypto community believe led to the 20% price drop. Others still blamed the bureaucratic process of getting approval from the U.S. authorities for Bitcoin traded funds.

What Happens Next?

Several analysts in the crypto community mention the Rule of 10 best days which is a bull market narrative that the biggest gains are to be made, on average, over a period of 10 days. Although this rule of thumb has some basis in market analysis, it is difficult to properly gauge the precise reactions of traders and investors.

While buying the futures contracts issued by ICE may not sound appealing to some investors, you can benefit from the proper prediction of the cryptocurrency markets right away, by either shorting or buying the assets. Others, such as BitMEX, allow you to trade Bitcoin options, which give you the opportunity to trade at a specific price and date.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News


Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020