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.

Register for Latest Updates & News

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin

Haru Invest – the Ideal Platform to Get in Touch with Crypto

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 […]

22 March, 2022
Bitcoin

XBE Community Launches a $500k Bug Bounty

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 […]

28 December, 2021
Bitcoin

11 Biggest Sponsorships Deals for the Crypto Market in 2022

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 […]

1 December, 2021
Bitcoin

ChangeNOW Unveils a New Cashback Feature

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 […]

15 November, 2021
Bitcoin

Celsius Casino is Raising the Temperatures with a Voluminous Game Lobby

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 […]

9 November, 2021
Bitcoin

ChangeNOW Has Announced the Release of its Own Digital Wallet

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 […]

29 October, 2021
Bitcoin

BitPanda Enhances Its BEST Rewards Programme

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 […]

25 October, 2021
Bitcoin

ChangeNOW’s AML Action Lead To The Return Of $15M COMP

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 […]

6 October, 2021