Ever since it was first announced back in August 2018, Bakkt has been the talk of the cryptocurrency community. Crypto traders and investors were expecting Intercontinental Exchange’s first-ever Bitcoin futures trading platform to have such an impact on the market and Bitcoin’s supply, that it would almost instantly ignite the next bull run and send Bitcoin to a new all-time high.
On September 23, Bakkt launched, and not only has it failed to cause Bitcoin to take off like a rocket on its next bull run, but Bitcoin has also crashed and fallen over 20% since its lackluster debut and the platform’s trading volume thus far has been disappointing, to say the least.
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A Reputation Tarnished By Repeated Delays
Throughout the bear market, the one event that crypto investors had held high hopes for, was the launch of Bakkt, from the parent company of the New York Stock Exchange. However, the platform saw several delays that undoubtedly tarnished the excitement surrounding the launch. The belief amongst the community was that once institutional investors could have exposure to physically settled Bitcoin futures contracts, it would have a dramatic impact on the supply and demand of Bitcoin.
Bitcoin is hard-capped so that only 21 million BTC can ever exist, giving it a scarcity attribute that is similar to gold. As more and more high-wealth institutional investors bought up Bitcoin-based contracts, the idea was that the demand would begin to outstrip the already scarce supply, and Bitcoin’s price would explode as a result.
In anticipation of what the launch of such an important platform like Bakkt would have on the market and price per BTC, investors began buying up Bitcoin at the start of 2019, causing the asset to go on a powerful parabolic rally.
It wasn’t until August 2019, roughly one year later from when Bakkt was first announced, that Bakkt CEO Kelly Loeffler announced the launch date of the platform. The crypto community rejoiced that the day they had long-awaited would finally be here on September 23, 2019.
Bakkt Launches to Abysmal Trading Volume
September 23 arrived, but Bakkt has ultimately failed to have the impact the cryptocurrency community had expected and has only experienced an extremely meager volume of Bitcoin contracts traded.
#bitcoin crashing down, Want to know why?
I'm under the impression that it's Bakkt disappointment, people expected tons of volume immediately and it wasn't there. Therefore those who bought in preparation for this are now just pulling a bit out. I bet we will see bounce back #btc— Crypto Lucifer Software (@LuciferSoftware) September 25, 2019
During the first week of the platform’s launch, it traded under 1000 BTC or $5.8 million in Bitcoin trading volume. While this may sound significant to many, but by comparison, on the first day of trading alone, CBOE launched with $73.61 million or 3969 BTC traded, while CME launched with $100.66 million in trading volume or 5270 BTC. Bakkt’s first day was an embarrassing $0.71 million or 72 BTC. PrimeXBT – a popular Bitcoin-based margin trading platform, trades roughly $350 million each and every day.
Bakkt is a platform for institutional investors with massive wealth, making the lack of trading volume even more glaring. It’s caused the crypto market to quickly come to the realization that Bakkt won’t have the incredible influence over Bitcoin prices they had hoped for. At least not for many years to come.
Disappointment in Bakkt Caused Massive Bitcoin Selloff
Once crypto investors caught wind of how poor the trading volume and interest in Bakkt was, disappointment permeated the crypto market. The same day Bakkt launched, Bitcoin price broke below $10,000, and the very next day, Bitcoin price dropped a massive 18% in one day, plummeting to a low of $7,800 before the leading crypto asset bounced.
Many still searching for an answer for the $BTC crash
Sequence is simple
#1 Larger time frame consolidation (the 2019 triangle)
#2 Stops consolidate at the edges of the range
#3 Range awaits resolution, to see who wins
#4 Bakkt disappointment is a trigger to move lower pic.twitter.com/vBITEN5jqg— Alex Krüger (@krugermacro) September 25, 2019
Thus far, any bounces Bitcoin price has attempted to muster up have been rejected by extreme bearish sell pressure, and the selloff is likely to continue as more and more crypto traders sell their Bitcoin in profit.
But just because the price of Bitcoin is falling, and the Bakkt launch is more boring than anyone ever could have expected, it doesn’t mean that investors and traders need to suffer through additional loss in Bitcoin’s value.
PrimeXBT Traders Profit From Bitcoin Price Drop, While Others Wait for Bakkt
Part of the reason for PrimeXBT’s massive trading volume compared to Bakkt, is due to the powerful trading tools offered by the platform, that allow traders to profit from Bitcoin regardless of if its price is falling or rising.
At PrimeXBT, traders who opened up a short position at 100x on Bitcoin the day of the Bakkt launch would have made a substantial profit, in just 48 hours of trading. On the day of the Bakkt launch, Bitcoin price fell 20% over the next two days. With the power of 100x leverage, that same short position would have resulted in a 2,000% profit from Bitcoin’s fall.
Rather than continuing to wait for Bakkt to ignite the next bull run in crypto markets so they can profit on spot prices going up, traders are taking full advantage of the current volatility and turning a significant profit, all while Bitcoin’s price falls. It’s causing PrimeXBT’s trading volume to increase, while Bakkt continues to struggle.
Unlike investors, traders can profit in any market environment, whether it’s a bear market downtrend, bull market uptrend, or if an asset is trading within a tight trading range while it consolidates ahead of the next big move. PrimeXBT provides all of the financial industry’s best trading tools, including built-in charting software, advanced order types, and so much more, to ensure traders are ready for the market’s next move at the drop of a (Bit)coin.
PrimeXBT also offers traders exposure to markets beyond Bitcoin and cryptocurrencies, by featuring traditional financial assets such as gold, silver, commodities, stock indices, and the world’s most popular forex currencies. All of the assets are even available through the platform’s new mobile app, and will work with the platform’s upcoming fund management module, called the Covesting module.
Conclusion: Don’t Wait For The Next Bull Run To Profit
Don’t get caught up in unfounded hype like the Bakkt launch, or sit waiting for the next bull run to take shape in order to finally profit from Bitcoin and the crypto market. Instead, register for PrimeXBT and take full advantage of the volatility Bakkt disappointment brought to the market, and profit from both rising and falling Bitcoin prices using the hottest trading platform in the market.
The post Bored With Bakkt? Profit On The Hottest Bitcoin Trading Platform Right Now appeared first on Blockonomi.
October 03, 2019 at 02:32AM https://blockonomi.com from Blockonomi https://ift.tt/2nSsmCx
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