The launch of the largest institutional bitcoin product of the year is finally upon us. Can it rejuvenate momentum on BTC markets or will it be a big overrated flop? We will find out tomorrow.
Countdown to Bakkt Big For Bitcoin?
With just a day to go, the long-awaited Bakkt physically-settled bitcoin futures trading platform is almost here. Its September 23 launch date has been heralded by many as bullish for BTC as it will enable institutional investors to dabble in the markets.
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The contracts will be paid out in BTC but it is unlikely that investors will want to keep it else they would be buying the asset directly. At the moment it is the extreme volatility that is off-putting for most institutions which thrive on stability.
Bitcoin price has been range-bound for the past two months indicating that very little new money has been entering markets. It is the same swing traders buying and selling between themselves that are causing the market chop.
Bakkt could change all that if new money starts to enter bitcoin markets. Economist Alex Krüger posed the question on volume traded and how the launch will go.
“CME bitcoin futures traded $460 million on its first week. Current volume is around $700 million. The Van Eck fake ETF traded $0 on its first week. How much volume will Bakkt attract is a key variable for the week ahead. Would you expect Bakkt to flop or to launch successfully?”
CME bitcoin futures traded $460 million on its first week. Current volume is around $700 million. The Van Eck fake ETF traded $0 on its first week.
How much volume will Bakkt attract is a key variable for the week ahead. Would you expect Bakkt to flop or to launch successfully?
— Alex Krüger (@krugermacro) September 22, 2019
The results at the time of writing were an even split with half of the 1200 respondents expecting it to flop.
The launch appears to be coinciding with the apex of the large descending triangle formation on the BTC price chart so a big move is likely to follow next week. Crypto warlord John McAfee remains bullish adding that it provides a level of trust that institutions have not had before.
“It is an institutionalized exchange so I won’t be using it, but institutions will feel a level of trust that they had not had. It could jump-start crypto adoption.”
BAKKT goes live tomorrow. It is an institutionalized exchange so I won’t be using it, but institutions will feel a level of trust that they had not had. It could jump-start Ctypto adoption. But remember – it is the opposite of freedom’s movement.
— John McAfee (@officialmcafee) September 20, 2019
Fundstrat’s Tom Lee echoed the sentiment adding that he is very positive on Bakkt and its ability to improve trust with institutions to crypto.
Others fear that the institutions will become the new bitcoin whales leading to greater market manipulation. Many industry observers commented that the launch of the CME and CBOE futures in December 2017 led to the big bear market the following year since institutions were able to short BTC for the first time.
Either way, the wait is almost over and a big move lies ahead for bitcoin next week when Bakkt gets off the launch pad.
Will Bakkt boost bitcoin prices or cause it to dump? Add your comments below.
Images via Shutterstock, Twitter: @krugermacro, @officialmcafee
The post Bakkt: A Big Boost For Bitcoin (BTC) or Will It Flop? appeared first on Bitcoinist.com.
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