Bakkt Exchange Bitcoin futures begin slowly on the first trading day
Bakkt’s physically backed Bitcoin futures trade saw a slow start in today’s launch.
Minutes after the launch at 12:00 UTC, the first Bakkt / ICE futures contract changed hands to $ 10,115. The number of contracts in the first hour was only 5 in total. At the time of publication (about 10 hours later), 28 contracts had been negotiated, with only one at a price lower than $ 10,000.
Some online commentators believe that the slow start is a natural progression for regulated futures products.
Su Zhu, CEO and CIO of the Three Arrows Capital hedge fund, based in Singapore, said most of the regulated futures contracts see low adoption on the first day, simply because not all futures brokers are ready to liquidate them.
Bitcoin futures on the Chicago Mercantile Exchange (CME) recorded a volume of $ 460 million in its first week of December 2017. So far, Bakkt futures have registered a volume of just over $ 280,000.
Bitcoin falls at the launch of Bakkt
The bitcoin market has not seen a noticeable momentum since launch. The bitcoin spot price (BTC) fell below $ 10,000 at 00:17 UTC near today’s open trading period.
Many observers believe that Bakkt’s physically established futures change the game and could generate a greater institutional volume. Cryptocurrency analyst and trader Scott Melker in August called Bakkt futures the most optimistic development in bitcoin history. This is due to the fact that physically delivered futures require the actual purchase of bitcoins.
That said, exactly how shocking the launch will be for the markets and cryptography in general remains speculative. In addition, an increase in trading volumes does not always lead to a bullish price action; After all, futures can be used to create short positions.
Therefore, seeing an increase in volumes driven by Bakkt as a bullish price development could prove costly for traders.
In addition, BTC suffered losses after the launch of the future CME and CBOE in December 2017, as can be found in the available information.
As can be recalled in what happened in that year, the market started at almost 90 percent from the maximum BTC spot prices of $ 20,000 after the launch of bitcoin futures at the end of 2017.
In addition, the market would probably have been priced high at the launch of Bakkt last August. At that time, the Bakkt Trust Company futures launch announcement, a subsidiary of Bakkt Holdings, which is licensed by the State of New York to provide custody of bitcoin, fueled investors’ sentiment on August 17 and prices rose to $ 10,940.
Markets soon stabilized and followed a rapid rejection, with a reduction of approximately 14.53 percent to $ 9,300 by August 29.
The cryptocurrency trade is very susceptible to speculation, bitcoin futures are no exception, short-term investors try to win immediately, this new way of marketing by Bakkt, will have its touch of speculation, then the waters will calm down, institutions are expected to enter this market. Waiting for new announcements.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.