Bakkt’s Bitcoin warehouse custody services went live earlier today, allowing customers to deposit and withdraw Bitcoin ahead of the upcoming futures contracts. However, some believe that this announcement may be the cause of Bitcoin’s sudden price drop.
Shortly after the announcement, popular cryptocurrency trader @MoonOverlord shared the news with the caption “Look what Bakkt just did to bitcoin.”
Look what Bakkt just did to bitcoin https://t.co/ZdVhWYQJ5T
— Moon Overlord (@MoonOverlord) September 6, 2019
Shortly after the announcement, Bitcoin’s price dropped $400 or so from $10,850 down to $10,450 as of this writing. Are institutional investors jumping at this new possibility, with enthusiasts getting ready to bet on future Bitcoin prices?
It should come as no surprise that anything Bakkt-related is moving the market, but it’s doubtful that many expected a drop downwards.
Of course, Bakkt’s actual futures contracts don’t launch until September 23rd, but it is commonly believed that the platform should prove quite bullish for Bitcoin in the long run. In fact, Bakkt announcing that it even received approval from the New York State Department of Financial Services last month pushed the asset’s price up $300 within the hour.
Related: Looking to buy and sell Bitcoin? Check out our guide on the best cryptocurrency exchanges for trading Bitcoins.
Why the big change? Especially since other platforms like the CME Group offer Bitcoin futures already? Well, Bakkt’s are the first to offer daily and monthly contracts with physically delivered Bitcoin, rather than a fiat equivalent.
Of course, there’s no proving that Bakkt’s announcement is the reason for this move, but it’s hard to argue otherwise. For example, earlier today a Bitcoin whale moved $1 billion in BTC out of the blue. Could they have something to do with this? It’s likely, however, that the price drop was the result of a planned movement from many investors, considering we knew Bakkt would be launching Warehouse support as of today.
We’ll have to see how the market is affected come September 23, when futures contracts on the platform become a reality.
What do you think about the sudden price drop? Is it definitely Bakkt-related? Let us know your thoughts in the comments below.
Images are courtesy of Twitter, Shutterstock, CoinMarketCap.