The news that regulatory approval has finally been granted to Bakkt has generally been perceived as bullish for the industry. However, not all in the crypto community are convinced that it is the best thing for Bitcoin and its brethren.
How Bullish Is Bakkt?
As reported yesterday by NewsBTC, the Intercontinental Exchange’s (ICE) new crypto trading platform has finally been given the go-ahead. A September 23 launch date has been set following regulatory approval by the Commodity Futures Trading Commission (CFTC) and the New York State Department of Financial Services. It may well open the door to institutional investors and could be a giant step forward for crypto industry legitimization in the US.
The concept of physically delivered bitcoin futures backed by the New York Stock Exchange may be the catalyst that takes BTC to mainstream consumer markets. Not all are convinced though as comments on crypto twitter today reveal. Crypto analyst going by the handle ‘CryptoChartsJoe’ has predicted a run up before the September launch then a big dump when it goes live:
“Regarding the #Bakkt news, expect the Crypto market to catch a bid, and run up hard. Then on the day that #Bakkt actually goes live, there’ll be a market selloff!! Again, Wall Street is best for breaking hearts, and stealing souls,”
Think like a criminal ??
Regarding the #Bakkt news, expect the Crypto market to catch a bid, and run up hard.
Then on the day that #Bakkt actually goes live, there'll be a market selloff!! Again, Wall Street is best for breaking hearts, and stealing souls ???
— CryptoChartsJoe (@CryptoChartsJoe) August 16, 2019
Wall Street involvement in Bitcoin is rarely met with enthusiasm. The ability to short the asset as seen on CME futures markets leads to market manipulation which remains a fear for retail traders. Data scientist ‘CryptHawk’ echoed the sentiment tweeting;
“Not even gonna comment anything about #BAKKT so it’s useless and adds more manipulation, BS and crooks!”
Short Term BTC Price Movements
Crypto analyst has taken a look at possible price implications and has called for a break to the downside when Bakkt gets launched.
“I think we will be staying within this wedge area until #Bakkt Futures Launch on September 23….
Which coincidently coincides with the end of the wedge!
I predict it will break down.”
When the news broke BTC price barely blipped. Markets have been choppy this week and two dips into four figures have been recovered but Bitcoin is still facing strong resistance where it currently trades. A move up to around $10,400 was all that it could muster and the king of crypto almost 12 percent on this time last Saturday.
The Bakkt news has not affected Bitcoin prices in the short term, and while many are of the opinion that it is overwhelmingly bullish, not all share that sentiment.
Image from Shutterstock