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Why is There a Disturbing Correlation Between Bakkt Future's Price & Bitcoin?
Is Bakkt's Futures Tanking Bitcoin's Price?
Cryptocurrencies and Bitcoin tend to be highly volatile investment assets or currencies. As most of you know Bitcoin has had amazing highs of $20,000 and recent lows of $3,400. These price fluctuations are often very quick and at times hard to explain. During the past several months Bitcoin enjoyed a period of relative stability of around $10,000.
This abruptly came to an end when a project thought to push Bitcoin's price up seemingly did the opposite. Since the Launch of Bakkt's Bitcoin Futures, Bitcoin fell below the $10,000 mark and is yet to recover.
It is currently trading at $8,471 at the time of writing this.
Bakkt's Bitcoin Futures & Its Influence on Bitcoin
Despite having a launch that could be only considered a flop, Bakkt seemingly has a large influence on Bitcoin's price. Despite memes and mocking the empty Bakkt trading floors and a very low trading volume, it seems that they can still affect the market.
The closing prices listed on Bakkt's Bitcoin futures seem to match the price of Bitcoin in a disturbing recurring pattern. We will follow Bakkt's closing prices today to further confirm or dispel our assumption.