Bitcoin Price Skyrockets $500 In Minutes As Bakkt BTC Contracts Hit Highs
Bitcoin (BTC) surged $500 in just five minutes today after experiencing a sharp drop on Oct. 23, from $7,950 to $7,450 and sitting at the position for two consecutive days. Bitcoin Price Skyrockets $500 In Minutes As Bakkt BTC Contracts Hit Highs
According to the data from Coin360, BTC gained $536 in minutes, skyrocketing from $7,855 to $8,391. At press time Bitcoin is trading at around $8,424, up nearly 13% over the past 24 hours.
While the reason behind the recent drop is not clear, some community members attribute Bitcoin’s latest surge to 661 BTC futures contracts liquidation on the Bakkt platform, with the last recorded trading price settling at $7,890 per Bitcoin.
Twitter account Bakkt Volume Bot, which carries out live tracking on the platform, indicated the following performance:
∙ Today’s Volume So Far: 661 BTC
∙ Last Traded Price: $7,890.00
∙ Trading Day Progress: 38% (If This Continues: 100% Equals To 1740 BTC)
The latest trade deal on Bakkt apparently marked a new all-time high in BTC futures
volumes, following the previous high of 452 BTC futures contracts traded on Oct. 23.
Still other members of the community attribute today’s BTC surge to President Xi Jinping’s encouragement of blockchain development in the country.
Bitcoin Pulls Altcoin Markets Higher
Bitcoin’s rally has pulled altcoins higher, with some of the top-20 coins reporting double-digit gains on the day. In general, the top-20 cryptocurrencies are up from 0.02% to 21%.
The total market capitalization of all cryptocurrency markets is around $228,9 billion, up from $208 billion earlier in the day.
Bakkt Teases Launch of Consumer Payments App Scheduled For 2020
Cryptocurrency custody and futures trading platform Bakkt has announced its coming entry into mobile payments with a consumer app.
Per an Oct. 28 blog post from the company, Bakkt will follow its recent successes in trading Bitcoin (BTC) futures with a consumer app. According to the company, the app will help consumers “unlock the value of digital assets, as well as ways in which they can transact or track them.”
Starbucks on board
Though the announcement is vague on the specifics of the app’s functionalities, coffee empire Starbucks is the first major retailer to commit to the new payments application. Maria Smith, Starbucks’ vice president of partnerships and payments, said:
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks.”
What’s New In The App?
Bakkt’s announcement broadly indicates a desire to speed up the conversion of digital assets into locally useful payment systems. It reads:
“We’re working to reduce friction in the use of digital assets to reflect their aggregate value and to reflect an increase in purchasing power that was previously siloed.”
The mechanism that Bakkt will be using for exchanging digital assets at points-of-sale remains unclear. Smith mentioned 15 million Starbucks Rewards members as a template for payments, but operations involving competing retailers and depending on cryptocurrencies present different challenges.
Bakkt’s Futures And Futures Options Trading
Bakkt has been busy in recent months. In September, the company opened trading of physically delivered Bitcoin futures on its platform.
On Oct. 24, following an all-time high in BTC futures contracts traded, Bakkt announced that it would be launching fully regulated BTC futures options trading in December.
Bitcoin Price Chart Now Looks ‘Ridiculous’ After Record Gains: Analyst
Bitcoin (BTC) held above $9,000 on Oct. 28 as a weekend of bullish madness continued to captivate markets.
Bitcoin Price Mulls Next Move Amid $8.8K Warning
Data from Coin360 showed volatility remaining elevated for Bitcoin on Monday, with swings between $9,100 and $9,900 characterizing the past 24 hours.
On Friday, news that China was officially embracing blockchain technology appeared to reawaken enthusiasm across cryptocurrency markets. After trailing at $7,400 for several days, BTC/USD suddenly exploded, hitting local highs of nearly $10,500 early Saturday morning.
Those levels have since consolidated, with the press time price of $9,400 nonetheless corresponding to 3-day gains of 25%.
China fuelled the mood once more as the week began, Cointelegraph reporting on the news a major national bank had sealed an investment deal in a Bitcoin wallet provider.
Despite the excitement being tangible among market participants, however, not everyone was convinced the new highs would endure.
“The chart obviously looks completely ridiculous now and CME are going to open with a gap to the upside if prices remain like this,” Cointelegraph contributor filbfilb told subscribers of his dedicated Telegram channel over the weekend.
Filbfilb added he expected BTC/USD to return to levels around $8,800.
Altcoin Markets Show A Clear Divide
Altcoins likewise maintained higher levels after rising precipitously in line with Bitcoin. However, it was Chinese projects which showed a clear advantage for traders.
Both Tron (TRX) and NEO (NEO) delivered considerably stronger performances than the average top twenty cryptocurrency, both rising around 23% in the past 24 hours. Tezos (XTZ) and Zcash (ZEC) also showed progress with 8% gains.
Ether (ETH), the largest altcoin by market cap, meanwhile saw sideways movements on Monday, with daily gains of just 1.5% to $182.
The overall cryptocurrency market cap hit $250 billion, with Bitcoin’s share at 68%.
Bullish Bakkt: Company Launches New Products As Futures Trading Surges
Each time Bitcoin (BTC) rallies past the all-important $10,000 mark, analysts seek to attribute the rise to major events occurring across the industry. The crypto sector is young, volatile and one major announcement can send ripples across the market.
In recent weeks, the market was on a downward trend, but a number of major occurrences have lifted the spirits of the industry participants. Bakkt, a company that focuses on driving institutional investment in crypto, has long been hyped as playing an important role in impacting market valuations.
But Bakkt’s product launches have not always matched up with its reputation. Back in September, the company launched a much-vaunted futures platform. Regardless of hype from the community and analysts alike, the project saw just 71 BTC (about $700,000 at the time), paltry figures for a project that was touted as a favorite to draw in serious institutional investment. Since the muted launch of the futures platform, volumes have grown, with two notable spikes during the last week.
Bull In The China Shop
Chinese President Xi Jinping’s call for blockchain innovation to be accelerated in the country has seemingly zapped a languishing market back into action. Bitcoin immediately shot up to over $10,500 and many altcoins rode the wave firmly back into the green.
Many crypto platforms experienced a boost in volume, and Bakkt was no different. According to data from the Twitter-based monitoring resource Bakkt Volume Bot, Bakkt traded 1,183 Bitcoin ($11 million) futures on Friday.
Since the launch of the futures platform, volumes have mostly been well below $1 million a day. The massive spike in trading was a 257% increase on the previous jump, a record that had only recently been set at 441 BTC futures contracts ($4.8 million) on Oct. 23. At press time, the total volume is over 616 traded contracts, down 48% on the previous day of trading.
As the volumes on Bakkt’s futures platform grow, the firm announced on Oct. 24 that it would launch the first regulated options contracts for Bitcoin on Dec. 9. In a press release, Bakkt announced the options contracts would comprise of capital efficiency, cash or physical settlement, low fees and European-style options.
The firm also said an in-built messaging service would allow traders to communicate while carrying out block trades, options and analytics. Although the options service will launch fee-free, Bakkt will begin charging $1.25 per contract from January 2020. Omar Bham, a content creator and frequent commentator on developments across the industry, explained to Cointelegraph why options are considered a fairly safe bet for investors in comparison to futures:
“They allow speculators to have the ‘option,’ but not obligation to finalize an expected short or long position (call/put). Futures payout gains/losses daily, and can hurt of certain positions are held. Options really only hurt traders via whatever they paid for the contract premium (price of opening the contract). Options will attract a whole other mature class of speculators to BAKKT, which could drive much more volume to the platform.”
Bham told Cointelegraph that Bakkt’s options service could further increase institutional investment in cryptocurrency, “As BAKKT caters to institutional players with big capital, increased volume from options should beget even more volume, as the platforms credibility grows.” He went on to add that because Bakkt requires BTC for settlements, it could drive the demand for crypto.
While many analysts were initially disappointed by Bakkt’s early BTC futures volumes, Bham outlined his view to Cointelegraph that both platforms will grow organically over time:
“BAKKT will continue to become an institutional household name, due to their association with ICE. As volumes grow, this will expedite even faster future growth.”
Prominent crypto analyst on Twitter “Dave the Wave” also told Cointelegraph that Bakkt’s options launch would funnel more institutional money into crypto markets. The analyst explained that the boost in liquidity could reduce volatility, leading to an eventual rise in prices.
Joseph Edwards, head of research for Enigma Securities, an institutional and corporate-facing over-the-counter crypto firm, told Cointelegraph that regulated Bitcoin options will benefit the industry long term:
“In the short term, while we’re optimistic and we see greater and quicker utility than was the case for the monthly futures release, we suspect that the markets still have September’s lesson in memory and that it will be unlikely to move the needle either way.”
While Edwards takes a dim view of the service that Bakkt is currently offering, he admitted that the discrepancy in volumes since the platform’s launch could come down to low usage from day traders, adding that, “What Bakkt currently offers in terms of its futures product does not provide game-changing utility.”
For Edwards, although the ripples from the Chinese government’s shift on blockchain might have had an immediate effect, it could be unwise to assume that institutional investment will be similarly impacted:
“We are taking a wait-and-see approach here, and would caution against assuming too much too quickly. The real implications for development are more likely going to be felt in the 1–3 year timespan than right away; we see it as fairly neutral for institutional interest in the short term.”
Bakkt pairs up with Starbucks
Although most of Bakkt’s commercial services have targeted institutional investment, the firm announced its entrance into the mobile payments sector with a new app-based project. Building on the momentum of the record volumes witnessed in its Bitcoin futures platform, the company announced in an Oct. 28 blog post that it would launch an app to help customers “unlock the value of digital assets.”
Thin on substance but big on ambition, the announcement revealed that the coffee behemoth Starbucks would accept digital payments in its stores. Starbucks’ vice president of partnerships and payments, Maria Smith, said:
“Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks.”
It remains unclear exactly how Bakkt will exchange digital assets into USD at points-of-sale. Smith indicated that the system for Starbucks Rewards, which has around 15 million members, could serve as a template for the payments scheme. Mike Novogratz, head of cryptocurrency merchant bank Digital Galaxy, tweeted his view that the venture from Bakkt and Starbucks is a sign that crypto acceptance is just around the corner:
“Follow this space. I.e., this is a big deal. Crypto acceptance is coming. Bakkt to launch consumer app in the first half of 2020; will test product with Starbucks.”
Joe Weisenthal, editor of Bloomberg Business and prominent finance commentator, criticized Novogratz’s tweet, commenting that coffee can already be bought with a wide range of payment systems and that the introduction of a crypto option was unlikely to change anything, saying: “I disagree. It is incredibly easy to buy coffee these days with a range of payment systems, and I can’t fathom how or why a crypto-based system will improve anything.”
Bakkt Set To Smash Bitcoin Trading Volume Record In November
Bitcoin (BTC) futures trading on the Intercontinental Exchange Bakkt platform is seeing a considerable rise in average daily volume so far this month compared to September and most of October.
Volumes yesterday, Nov. 5, hit close to their all-time-high — with 1061 traded contracts worth $10 million, a 96% increase over the previous day.
According to tracking data compiled by Twitter account Bakkt Volume Bot (@BakktBot) — which is not affiliated with Bakkt but rather with a Dutch journalist and crypto author Gert-Jan Lasterie — the platform had posted its all-time-high for traded contracts on Oct. 25.
November On Course To Smash October Volumes
At the current pace, Bakkt should trade over $200 million in BTC futures contracts in November.
Bakkt Volume Bot’s data reveals that as of late October, Bitcoin futures trading has been significantly and consistently higher than during the first month of the platform’s launch.
When compared to data on the Bitcoin spot markets, this strong uptick in Bakkt volume appears to correspond to a period of volatility kicking off — with Bitcoin falling below $7,500 and rapidly soaring to over $10,400 in late October, before settling closer to the $9,300 range in recent days.
Notwithstanding the more robust volume posted on Bakkt, volumes are still a considerable way off from the almost $970 million in daily traded volume currently on the Binance Futures platform.
As previously reported, Bakkt’s much-anticipated contracts — the first of their kind to be physically settled in Bitcoin — went live on Sept. 22.
The platform’s underwhelming volumes in its first week were immediately unfavorably compared to the fiat-settled BTC futures on CME, which first launched back in December 2017.
Bakkt Bitcoin Futures Daily Trading Volume Hits New Record — $15M
Bitcoin (BTC) futures daily volumes on digital asset platform Bakkt have hit a new all-time high, with 1,741 futures traded on Nov. 9.
Bakkt Announced The New Record, Stating:
“Today we set a new daily record of 1,756 Bakkt Bitcoin Futures contracts traded.”
Volume spike coincides with Bitcoin price dip
Twitter account dedicated to Bakkt futures trading volume data, Bakkt Volume Bot, also pointed out the development on Nov. 8.
Additionally, the daily volume of 1,741 (about $15.5 million) represents a 109% increase over the 834 contracts traded the day before with each contract being equivalent to one Bitcoin.
The new record volume coincides with a sharp Bitcoin price decrease, falling under $9,000. The last reported Bakkt contract trading price as of press time is $8,895.
Bakkt’s Volume Rising Month Over Month
Bakkt physically settled monthly Bitcoin trading volumes have been steadily rising since its launch. In October, its volumes have hit a new all-time high with 452 contracts traded.
Notably, on Oct. 26, Bakkt traded 1,183 Bitcoin futures contracts after registering a staggering 257% volume increase in 24 hours. This also coincided with a major price move that sent BTC over $10,000.
As Cointelegraph reported earlier this week, Bakkt is also on its way to set a new monthly trading volume record. The company is also expected to launch the first regulated Bitcoin options contract on Dec. 9.
Bakkt Rolls Out ‘Critical’ Bitcoin Custody After NY Gives Green Light
Institutional Bitcoin (BTC) trading platform Bakkt has announced it has launched its custody feature for its entire client base following regulatory approval.
Bakkt: Custody Is “Critical Link” In BTC Adoption
In a blog post on Nov. 11, Bakkt said it had received the go-ahead from the New York Department of Financial Services (NYDFS) to offer custody services to any institution. Previously, the option was only available for those trading its Bitcoin futures.
Commenting on the release, Bakkt described the custody tool as “the critical link in the institutional adoption of Bitcoin.”
“Safely storing digital assets demands a comprehensive approach to custody. Institutions and sophisticated investors need more than cutting-edge technology. They require proven infrastructure, robust operational controls, and independent oversight,” the blog post added.
Investors Eye Price Reaction
As Cointelegraph reported, the wider cryptocurrency sphere has keenly eyed the appearance of custody solutions following initial futures rollouts beginning in 2017.
Among them is Mike Novogratz, the serial investor who recently identified Bakkt’s offering as forming part of the essential metamorphosis of Bitcoin’s institutional appeal.
“But more importantly they’ve got a custody solution that’s just coming online… world-class custody which allows more and more people to feel comfortable with it,” he said in an interview late last month.
Bakkt’s Bitcoin futures contracts have set new records of their own in recent days, with $15 million traded daily.
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