Bakkt and Bitcoin’s Price Fall
A week ago, Binance research, the research department of crypto exchange Binance release a report that connects the launch of Bakkt with the recent fall of Bitcoin price.
Bakkt is a trading platform for futures on Bitcoin price, where for first time, the clearing for profits and losses will be on bitcoins, without exchanging other conventional currencies. The platform is a product from ICE (Intercontinental Exchange) and there was extreme interest in the entire financial system.
Last week, there was the biggest drop in Bitcoin price, from $ 10,000 to $ 8,000 over a period of 3 days.
Binance Research connects the 2 incidents and summarizes :
“Bakkt was under observation from many people from the financial world that want to bring institutional investors into cryptocurrencies and digital assets. This has happened before with CME’s Bitcoin futures launch. The disappointing start for Bakkt was an important factor that affects the fall of Bitcoin’s price.”
Bakkt’s COO, Adam White, states that Bakkt would like to aid Bitcoin and its price in the long term through its platform.