Bakkt to set sail in the markets with a Bitcoin futures trading platform will the boat float or sink? The platform is expected to launch by tomorrow and hopefully increase cryptocurrency adoption. Many analysts and investors believe that Bakkt’s involvement will be bullish for Bitcoin (BTC).
Bakkts contracts will be paid out in BTC, but currently, people will try to avoid holding it as the crypto is again in a state of volatility. This has shaken off various institutions that thrive on stability.
Bakkt launches Bitcoin futures trading platform: How is the market doing?
The price has been consolidating for several weeks, that means that little money has entered the market. This also means that most of the trade volume is generated by traders trading among themselves, which has caused the market chop.
Bakkt can change the price action totally by bringing in more cash to the markets. Alex Krüger noticed the question and stated that CME bitcoin futures were able to trade nearly half a billion dollars ($460). Now the volume that Bakkt’s Bitcoin futures platform attracts would dictate the price action for at least the week ahead.
The launch of Bakkt’s Bitcoin future trading platform is coinciding with the price action reaching the peak of the descending triangle pattern. This indicates that a significant price move is likely to occur in the next week.
While thought-leader John McAfee said that he would not use the platform even, he admitted that it was good news for the industry. McAfee believes that Bakkt would give a level of trust to institutions that were hesitant to get their feet wet.
He was joined by Fundstrat’s Tom Lee who also believed that Bakkt would increase institutional Bitcoin adoption.
Regardless, whether the platforms succeeds or flops remains unknown. Moreover, whether or not it creates an impact on the industry remains to be seen. Nonetheless, it will be a big move for the market irrelevant of what follows.