The Intercontinental Exchange-backed Bakkt finally launched and didn’t live up to the expectations but the Bakkt analysts warn that it is too early to call it a failure. In the coming altcoin news below, we find out more about the analysis.
The long-awaited Bitcoin futures contracts platform for institutions was launched after a year of regulatory setbacks and hurdles but before the launch, the platform was seen as the one catalyst that could help the Bitcoin price increase to new heights. It came to a surprise when the market didn’t see the so-called fireworks during the launch of the exchange but instead, the entire market flatlined and then began to dump. There was no clear catalyst for the price drawdown which led the number one cryptocurrency from $10,100 to $9,700 and many investors pointed out to bakkt and claimed that the exchange was a flop and it already failed.
Indeed, according to the market data of the Intercontinental Exchange, it says that the product has processed a mere 70 BTCs in volumes for its first trading session when compared to the CME bitcoin market. However, the Bakkt analysts say it is too early to determine if Bakkt has failed and said that it is worth waiting to find out. Bakkt is getting trashed by the crypto investors currently. The primary contention seems that the platform lacks trading activity mainly because over the last two weeks the narrative was that the institutional herd was lining up to storm the markets. The chief executive of Three Arrows Capital Su Zhu stated that the bitcoin markets will likely start a ‘’trickle and then a flood.’’ He explained that most of the regulated contracts see low adoption on the first day because not all futures brokers are ready to clear it.
Adam Back, another bitcoin pioneer and co-founder of blockstream, echoed this sentiment and wrote his own message that this takes time especially for the institutions to get on board with new exchanges. Even if the platform doesn’t perform well in the medium term, the analysts believe that this new Bitcoin investment tool will only be of benefit to the crypto markets in the long run. Thomas Lee of Fundstrat Global Advisors explained that he believes that bakkt will only improve the institutional access to Bitcoin. Many of the prominent companies support bakkt including Starbucks, Microsoft and the Pantera Capital as well who also believe that the platform will attract institutions that are on the verge as the reports outlined in the best cryptocurrency news sites.
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