After one of the biggest bull rallies in history which was everywhere in the crypto news sections on our site, leading Bitcoin (BTC) to a price of $19,500, the most dominant cryptocurrency ended the year with a 80% drop from its all-time high.
The truth is, Bitcoin enters the new year in a bear market with a status that is far from what many expected. After a steep sell-off this December, Bitcoin is now trading at $3,762 with a $65 billion market cap.
However, there may be several catalysts of good news for Bitcoin in the future.
One of them is Bakkt which is a cryptocurrency liquidity provider and exchange that is operated by the New York Stock Exchange’s parent company ICE – and is set to launch a Bitcoin futures market.
According to many experts, this type of market could have a significant impact on the price of Bitcoin as it will also have on the effect on the circulating supply of BTC. According to a government enforcement defense and securities litigation attorney named Jake Chervinsky (who works at Kobre&Kim):
“Also noteworthy is the fact that Bakkt will custody and deliver real bitcoin. That means institutional inflows would reduce supply and thus (maybe) increase price too. This is different from other regulated futures markets like CME and CBOE, which only deal in cash-settled futures.”
In the end, the potential effect on the price of Bitcoin entirely depends on the demand from US customers – specifically in the first several months of 2019.
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