Bakkt Was Behind The Bearish Month Of September


Jul 2, 2019
The Bitcoin USD market opened at $9,607 on 1st September 2019. By 30th September 2019, the price had fallen to $8,072 in what appeared to be a bearish market. This slump in price represents a significant drop since the beginning of the bullish trend of early Q2 2019. A report from the Binance research team notes that Bakkt was behind the Bearish month of September for Bitcoin.

After the previous launch dates were shifted, the Bitcoin futures trading platform Bakkt finally launched on 23rd September 2019. The platform now opens shop for institutional merchants to trade Bitcoin in a secure and trusted system, according to its website.

The Bakkt platform aims to offer a digital asset custody system that leverages on high level physical and cybersecurity technologies for custodial services. The platform also aims at enhancing other areas like the markets, payments systems, and compliance to provide a convenient platform for big players to enter into the Bitcoin and cryptocurrency ecosystem.

What Did The Crypto Community Expect From Bakkt?

The general opinion ahead of the Bakkt launch was that it will open up the industry to more adoption. The entry of institutional investors is expected to bring in some huge volume into the market. A development that most people believe will reflect in a more bullish market for Bitcoin and other cryptocurrencies.

In contrast to what most crypto users had anticipated, a few days after the launch of Bakkt, the markets took a bearish turn from which it is struggling to stage a comeback.

A section of the report by Binance Research, the exchange’s analytic arm reads:

“Bakkt was touted by many "crypto-observers" as an additional primary channel to bring large institutional flows into cryptocurrency and digital asset markets. It may certainly still do so in the future, as illustrated by the CME futures sluggish start and subsequent pick-up in volumes. Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.”

What Is The Prediction For Bitcoin?

There is an overall bullish anticipation for Bitcoin in the coming months. A number of key factors suggest that the industry might be setting up for another significant run to the upside.

The next Bitcoin halving in due for May 2020 and the market behaviour has not deviated from its historical pattern. This has made many Bitcoin enthusiasts confident that holding an upside perspective is their best bet. Besides halving, other channels that would allow the influx of large volumes into the market are being lined up. An example of this is the confirmation of CME to launch Bitcoin options in Q1 2020.

A lot of traders and investors, especially the very confident ones are seeing the present slump in price as an opportunity to build up their portfolios. Using a platform like Vertex.Market, buying Bitcoin and other cryptocurrencies is easy and straightforward. On Vertex, purchases can be done using bank transfer in an OTC marketplace. The platform’s high liquidity offer makes it possible to buy even high volumes of Bitcoin and other cryptocurrencies.

Perhaps, what is playing out in the Bitcoin marketplace at the moment is the common market behaviour of “buy the rumour and sell the news”. In the short term, the after effect of the Bakkt launch may have given rise to a bearish market. This doesn’t take away the validity of an eagle-eye view of the market which appears to suggest an upward behaviour in Bitcoin USD price. All the same, everything seems to uphold the report by Binance Research that says Bakkt was behind the Bearish month of September for Bitcoin.