New research from PrimeXBT shows the potential impact that Bakkt will have on the crypto market and if it can help cause Bitcoin to reach the price projections that the crypto community hopes for.
Only a few days remain before the launch of the long-awaited and much anticipated Bakkt trading platform, which will bring large institutional investors to the Bitcoin market. It may sound unfeasible, but Bitcoin price is expected to reach $100,000 in the coming years, and much of the next bull run will be driven by Bakkt.
What is Bakkt?
The Bakkt cryptocurrency platform was created by ICE, a transcontinental operator of the largest futures exchanges and clearing houses for financial and commodity markets in the USA, Canada, and Europe. The company is considered the world’s largest operator of the derivatives market, where futures contracts for energy, currencies, precious metals and other goods are traded.
About 50% of the global trading volume of futures contracts for oil and oil products is concentrated on ICE trading floors. The most famous platform led by ICE is the New York Stock Exchange (NYSE).
ICE is a giant in the exchange industry, with a long history and impeccable reputation, trusted by the largest and most famous investors and companies in the world with the trillions of dollars they invest with. The launch of a cryptocurrency platform from such a company will potentially attract enormous capital to the cryptocurrency market.
Bakkt is a cryptocurrency trading platform for supplying Bitcoin futures. Futures delivery time is daily and monthly. In addition to trading futures, custodial storage of cryptocurrencies is available to its customers. Bakkt differs from other trading platforms like CME (Chicago Mercantile Exchange), which is trading in delivery contracts, and not derivatives. Bakkt futures are physically settled with bitcoins, which many believe will have a positive impact on the demand for Bitcoin, driving up its value.
Among the first partners and investors of the platform are the world’s largest technology, consulting, and retail giants such as Microsoft, Boston Consulting Group and Starbucks, as well as a number of large investment firms and venture capital companies like Pantera Capital, Fortress Investment Group, Eagle Seven, Galaxy Digital, Protocol Ventures, Susquehanna International Group and Horizons Ventures.
There was talk about the launch of Bakkt back in 2018, but the official launch was constantly delayed due to lack of permission from regulators and only in August 2019, the CFTC finally issued permission to the platform, which marked a new era in the history of cryptocurrencies – the arrival of institutional investors. Later, on September 6, Bakkt announced the start of acceptance of bitcoins for storage before the start of trading, and even earlier, the platform began to accept deposits from customers.
Kelly Loeffler, Bakkt CEO explained what the platform is and what its goals are, saying that, “Bakkt is a scalable platform designed for institutional investors and trading companies that are interested in digital assets. We plan to build an open and transparent platform that will help unlock and transform the potential of digital assets in global markets and in trade. It is designed to make cryptocurrency investments safe and secure.”
Why is the Crypto Community Anticipating Bakkt?
The crypto community is awaiting the launch of Bakkt, as it is counting on an influx of capital being injected into the market, which contributes to the growth in the value of Bitcoin. The cryptocurrency industry during its existence has generated many successful and useful projects and initiatives that can change people’s lives for the better, and Bakkt is expected to do the same, and also fully ignite the next crypto bull run.
Since it was debuted, Bakkt hasn’t been without problems, but nevertheless, the industry and related projects will benefit from Bakkt joining the global financial system. The arrival of institutional investors and the launch of a regulated platform from such a giant as ICE suggests that the industry is finally earning the respect of traditional finance and regulators.
The increase in the value of Bitcoin will unfreeze many other projects that have not yet thawed after the “crypto winter”, will lay the foundation for new projects and, of course, will make money for investors and traders of Bitcoin.
The community is gradually preparing for the launch of the platform, updating mining equipment in order to get as much Bitcoin as possible, while the rate is still quite low. According to the CEO of the deVere Group consulting company, Nigel Green, support at $10,000 should now be considered the official bottom for the current Bitcoin trend.
Bitcoin has been consolidating between $11,000 and $9,000, forming a symmetrical triangle that suggests bullish continuation is ahead. And with the support line at $9,500 already tested 4 times, Bitcoin’s value is bound to skyrocket after the Bakkt launch.