The initial response to the long-awaited Bakkt Bitcoin (BTC) futures contracts has been positive. The asset itself, however, has not reacted and has dropped back below $10,000 price mark again this morning.
A Positive Start For Bakkt
The crypto industry has been eagerly awaiting this day for months now and it has finally arrived. A few hours ago the physically delivered Bakkt bitcoin futures contracts went live and investment began flooding in.
At the time of writing 18 BTC had already been entered into monthly contracts which have got off to a good start. The first trade was executed at just past 8 pm ET for $10,115.
We’re live!
The first Bakkt Bitcoin Futures trade was executed at 8:02pm ET at a price of $10,115
— Bakkt (@Bakkt) September 23, 2019
Bakkt has been onboarding clients for months while stocking up its bitcoin warehouse custody storage so a spike in BTC prices was not expected. There was some fanfare on CT but the launch was largely underwhelming in terms of bitcoin market action.
Trader and analyst ‘Cantering Clark’ commented that crypto markets provide access to a lot of liquidity that traditional markets lack.
“BAKKT is essentially recycled liquidity quoted from retail venues. This is the opposite of the normal liquidity profiles of traditional markets. Now ask yourself, why would $BTC price have jumped upon BAKKT opening? Those interested are likely already involved.”
2/2- BAKKT is essentially recycled liquidity quoted from retail venues.
This is the opposite of the normal liquidity profiles of traditional markets.
Now ask yourself, why would $BTC price have jumped upon BAKKT opening?
Those interested are likely already involved.
— Cantering Clark (@CanteringClark) September 23, 2019
Head of product strategy at TradeStation Crypto, James Putra, told Bloomberg;
“The move to centralize and create a scalable infrastructure for crypto asset investment is a positive step,”
Referring to the potential of two sets of profits once the assets are physically delivered he added: “I can capture both pieces and continue to ride that upward.”
If the current products are successful, ICE plans to offer a product aimed at merchants next year. At the moment over $100,000 worth of bitcoin has been entered into monthly contracts, there was no data available for the daily contracts yet.
Bitcoin Market Reaction
As expected there has been very little action on BTC trading markets since the launch. There was a brief climb above $10k but resistance proved too strong and bitcoin fell back again a couple of hours ago.
At the time of writing, BTC was trading at 00 and appeared to be heading back towards support in the mid-$9,000 range. The descending triangle formation is still intact but a big break out is expected when the patter reaches its conclusion later this week.
Bakkt is a long term driver for bitcoin so short term gains are not going to happen. If anything BTC is likely to fall back to longer-term support before any new rally can initiate.
Will Bakkt boost bitcoin prices in the long term? Add your thoughts below.
Images via Bitcoinist Image Library, Twitter: @Bakkt, @CanteringClark
The post Bakkt Launches With 18 BTC Traded In First Few Hours appeared first on Bitcoinist.com.
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