Even though it is common knowledge that the cryptocurrency sector is extremely volatile, no one was prepared for the loss the sector experienced in September. On Monday the 23rd of September, the Intercontinental Exchange (ICE) officially launched its Bakkt Bitcoin futures contracts and trades began. Since last year when Bakkt was first announced, it was hoped that the platform would be the much needed boost to Bitcoin and the major factor which will be responsible for the king coin’s surge, up to its current all time high and probably a new one. However, the reverse happened.
The day after Bakkt’s launch, Bitcoin fell quite terribly and hit a day’s low around $8,300, shocking the entire market especially considering its timing. Analysts from JPMorgan revealed that they believe Bakkt was directly responsible for the crash. Now, a Binance Research report has also corroborated this. The report said:
“One possible reason, explaining Bitcoin’s price drop, could be the general indifference towards the much-hyped release of Bakkt, as BTC prices dropped over $1,000 a day or so after trading began…Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.”
However, the Binance Research report still seems to believe that October could bode well for the sector. The report also touches on plans by the Chicago Mercantile Exchange (CME), to launch its Bitcoin options service in the first quarter of next year. Supposedly, this “will lead to new opportunities for all market participants, such as miners and traders, to build complicated trading positions.”
Image Credits: Pixabay
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