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Bitcoin Drops Under $10,000 as Bakkt Launches
Does It Have the Power to Push Bitcoin Up?
Bitcoin has had a pretty calm summer of relative low volatility. The world's first cryptocurrency broke the $10,000 mark on June 24th and has remained above that point for the most part since. Other than a few small dips to $9,500 occurred a few times Bitcoin seemed healthy and stable. Most dips recovered to above the $10,000 in less than 24 hours.
Surprisingly Bitcoin has dropped to below $10,000 on a day which most analysts believed would be positive for the currency. Bitcoin is trading currently at $9,945 at the time of writing this. While it seems that Bitcoin is likely to recover above $10,000 soon, this has been unexpected as Bakkt is launching today.
News of Bakkt's launch was expected to perpetuate growth and adoption by financial institutions. Many were shocked to wake up and see Bitcoin in the red.
Bakkt & Bitcoin All You Need to Know
A relative newcomer in the world of cryptocurrencies, Bakkt was founded in 2018 by InterContinental Exchange (ICE). Their parent company ICE is an American company that owns many exchanges and commodities markets.
Bakkt have launched several different products & services for cryptocurrencies. One of their first services was trading and conversion of Bitcoin to its fiat equivalent. Later, they rolled out their Bitcoin warehouse & custody service. Earlier today they launched a product that had the cryptocurrency community hyped for years, Bitcoin futures.
Bakkt Bitcoin Futures are now actively trading on ICE Futures U.S., while the Bakkt Warehouse continues to onboard bitcoin— Bakkt (@Bakkt) September 23, 2019
We take our customers’ trust seriously, and are excited to serve this market
It seems that for right now, Bakkt's futures market has not been as quickly adopted as thought. It seems that Bakkt Futures does not have a very large trading volume as per their official website. This may be due to lack of institutional support at this time, or simply because it's their first day of launch.
One must keep in mind that the first day of a product launch could be bumpy. Microsoft's Windows 98 crashed when announced by Bill Gates. The Samsung Note 7 had battery explosion issue revealed several days after launch. The iPhone 4 had widely reported signal issues on launch only to become one of the world's most popular mobile phones.
The crypto Twitter community has made several hilarious memes and jokes on Bakkt however.
“Institutional money will flow in as soon as Bakkt launches”— Emptybeerbottle (@Fullbeerbottle) September 23, 2019
Institutional money: pic.twitter.com/JKQL91Imqd
Time and trading volume will tell if Bakkt and Bitcoin futures are a success.