Recently Bitcoin price dropped by a little more than -5%. This price movement is rather unexpected since the community anticipated the opposite after Bakkt announced their test launch of its new Bitcoin futures trading platform.
The price of Bitcoin has dropped even after the much-anticipated Bakkt Bitcoin Futures Trading platform launch. The community celebrated with cheers this achievement of Bakkt and speculated more on a Bitcoin price increase rather than a decline.
Nevertheless, Bitcoin managed to drop in value as it touched the $10,700 levels but failed to maintain. Afterward, it dropped to key support levels at $10,500 and $10,400 but fell through them as well. Now Bitcoin is re-testing the $10,000-$9,800 resistance levels as at the time of writing, Bitcoin price sits at $9,994. If the price falls through this resistance point as well, the next one that you should keep an eye on is at $9,300. All-in-all, Bitcoin looks like has entered a short-term bear market.
Bakkt Launches Test For Bitcoin Futures Trading Platform
Even though Bakkt has delayed multiple announcements about a possible Bitcoin Futures Trading Platform launch, on Monday, July 22nd, it managed to launch the test version of it. They call it “user acceptance” tests. As they describe in a tweet published on Monday, the testing participants are “from around the world”.
Today kicks off user acceptance testing @ICE_Markets for the Bakkt Bitcoin Daily & Monthly Futures contracts
Testing is proceeding as planned with participants from around the world
— Bakkt (@Bakkt) July 22, 2019
The crypto community has long waited for this and now finally it’s here. Much speculation on how this might affect the current market is going on.
As Sam Doctor, the financial strategist at Fundstrat Global Advisors thinks – the launch of Bakkt futures trading platform “could be a huge catalyst” for crypto markets, more specifically Bitcoin. Also, he published multiple takeaways from the recent Bakkt Institutional Summit.
We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C
— Sam Doctor (@fundstratQuant) July 19, 2019
While many still think about the possible advantages and disadvantages this new platform might bring to the crypto industry, there is one thing which doesn’t get out too much. Bakkt Bitcoin futures trading platform will be settled in Bitcoin.
That means, that unlike traditional futures markets which operates payouts with FIAT, Bakkt Bitcoin futures platform will payout actual Bitcoins. We could see a rather big price increase once this platform gets actually launched. Also, this would increase the liquidity for Bitcoin, writes Rhythm on Twitter.
Bakkt begins testing on Monday.
The hype is bakkt with substance though.
Unlike other futures exchanges, this is settled in bitcoin.
Hard, actual bitcoin is paid out, not fiat equivalent to the price of bitcoin.
The result is better price discovery and liquidity for bitcoin.
— Rhythm (@Rhythmtrader) July 20, 2019
So What’s Next For Bitcoin?
While Bakkt is still only in a “user acceptance” testing regime, we can only speculate on recent Bitcoin resistance levels. Some say that we might be in for an 80% drop as the price might correct. Others say that this is only a slight correction and we will soon move forward.
“Soon” is a rather general statement. If we’re referring to Meltem Demirors. Recently she posted on Twitter the growth of Gold asset class. It shows that in the past 20 years Gold Futures markets have gone through the roof, experiencing a huge price increase. However, the first 10 years the price didn’t move much.
congrats to @Bakkt on the beta launch of their physically settled bitcoin futures contract!
the market for bitcoin is changing, and quickly. futures, derivatives, and synthetics will fundamentally change the nature of the bitcoin market. see below what happened to gold 👇 pic.twitter.com/PI8KKadjFY
— Meltem Demirors (@Melt_Dem) July 22, 2019
So we could be in for a quite long wait if waiting for a massive Bitcoin price increase. Nevertheless, Bitcoin is still up more than +200% this year and continues to be the best performing asset of all time.