The lackluster start to the highly anticipated bitcoin futures contract trading platform Bakkt was reportedly a “contributing factor” to bitcoin’s price drop in September.
Bakkt Impacting BTC Price
According to a report by the research division of leading crypto exchange Binance, Bakkt’s sluggish start generated market uncertainty which led to investors turning bearish on the price of BTC.
Binance Research characterized the month of September as a “bloodbath” for the crypto markets, with bitcoin suffering some of the worst losses,
The month of September was a bloodbath for the crypto-markets. Bitcoin stayed above $10,000 for most of June through September but has since plummeted to $8,000. Altcoins saw a brief glimpse of hope before the BTC price drop, lowering Bitcoin dominance to 67% at one point (dominance levels reached 71% in early September).
Altcoins managed to weather the market storm relative to BTC, with Binance Research writing that it had initially expected bitcoin dominance to climb higher despite falling prices. The report attributes greater availability of stablecoin pairings a potential buffer for the price of altcoins.
Binance Research found that market sentiment towards the disappointing launch for Bakkt was likely a contributing factor to bitcoin’s price in September.
According to the report,
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. Could it be another classic case of the “buy the news, sell the rumor” phenomenon that occurs in the crypto-industry?
Most crypto analysts believed that Bakkt would provide a primary channel for large institutional investors into cryptocurrency. While the platform could still become a major player in the BTC futures contract market, the exchange is off to a much slower start than bitcoin supporters would have hoped for.
Featured Image Credit: Photo via Pixabay.com