The crypto market has been behaving somewhat strangely over the past couple of weeks – Bitcoin has been rising and falling rather erratically while adding to its market dominance, and altcoins have been plunging in price and shrinking in their market cap and dominance. With the Bakkt launch nearing and the global economy fearing economic instability owing to several politico-economic events, the crypto market can swing in any direction. Here is a list of factors that are contributing to the unpredictability of the crypto market –
The Upcoming Bakkt Launch
Word in the market is that the Bakkt launch on September 23 will take Bitcoin to new highs. The launch of Bakkt was announced on August 16 and from $9675 on August 15, the price jumped to $10524 within just a day – 9% increase. It did dip below $9500 on August 30, but started gaining momentum again in the first week of September.
Today, on Sept 6, when Bakkt has launched warehouse deposits for institutional investors, Bitcoin is up nearly 3%, breaking the $10,800 mark after several days of trying and heading towards $11K.
The Gigantic Spike in CME Futures
The weekly volume metrics on CME projects saw a massive increase of 600% in the trading volume. The average volume in the last two weeks was 6.85(negative) and 7.72 (positive), units respectively.
This surge signifies an increase in the interest of institutional investors in Bitcoin. Unsurprisingly, this upswing in trading volume comes at a time when the Intercontinental Exchange-backed bitcoin futures exchange and digital assets platform Bakkt is about to launch.
Also, the present politico-economic situation – US-China trade wars, upcoming Brexit, Hong Kong protests and Argentina &