Bakkt, the long-awaited cryptocurrency trading platform by the Intercontinental Exchange (ICE) announced Friday that it (finally) obtained the regulatory approval to go ahead with the launch of the company’s institutional-grade custody solution and physically-delivered Bitcoin Futures contracts.
The buzz has been quite loud across the cryptocurrency space ever since as the company prepares to roll out these flagship products on Sep 23 officially.Expectedly, the news has generally been perceived pretty bullish by most analysts and commentators, with some going as far as calling it the best thing yet for Bitcoin and its brethren.Is it really that bullish, though?Let’s find out why Bakkt’s entry into the scene has instilled such enthusiasm among industry proponents.
The Keyword is “Physically Delivered”
The effect of Bakkt’s announcement was felt almost immediately as BTC jumped $300 within the hour of the news going viral in the cryptocurrency side of Twitter. Although the spike did subside afterward, it was only a matter of time until the question was raised as to why Bakkt’s entry into the scene was generating so much buzz. After all, it’s not the first company to be offering Bitcoin Futures contracts.Similar offerings are already on the menu from rivals such as CME Group, Cboe Futures Exchange, among others.
can someone explain how bakkt is bullish for bitcoin? (serious question, not sure myself)
— lewndart (@loomdart) August 16, 2019
Well, it turns out, there’s one key difference: Unlike all existing Bitcoin Futures offerings, the one from Bakkt is of the “physically delivered” variety.For those out of the loop, futures contracts come in two categories: cash-settled and physically delivered contracts. Cash settled futures contracts are not deliverable and involve the transfer of associated cash positions (debit/credit) to the signatories once the contract expires.With a physical delivery, however, the underlying asset (BTC in this context) is physically delivered to the buyer upon the expiry of the contract.
Bakkt’s Big Push For Bitcoin
In other words, any Bitcoin futures contract offered by Bakkt will require the actual purchase of Bitcoin and not its fiat equivalent. This is the critical factor that has led many analysts to believe that Bakkt’s offering will play a catalyst to push the demand for Bitcoin to new highs.Assuming they’re right, that’s going to be huge for the Bitcoin community worldwide — more so now than ever that institutional investment in the cryptocurrency space is already skyrocketing, as pointed out by Coinbase CEO Brian Armstrong yesterday.https://twitter.com/brian_armstrong/status/1162185049699057664?According to Joseph Young, a financial analyst and a familiar name in the broader community, Bakkt’s forthcoming launch has already reversed the likelihood of a short term bear trend.
Bakkt launch announcement in September almost instantly reverses the possibility of a short term bear trend of bitcoin after dipping below $9,500 on August 15.
Bitcoin is up nearly $1,000 since then within 48 hours.
A quick look at cryptocurrency Twitter is enough to get a sense of the prevailing market sentiment, which seems overwhelmingly positive.
Many of us said that this bull run was different, because it happened without retail interest or fomo. Price rose steadily from 3200 to 14K without media hype. Our hypothesis was that it was a result of institutional investment. I think that hypothesis was correct.
— The Wolf Of All Streets (@scottmelker) August 16, 2019
BREAKING: Bakkt with launch Sept. 23.
The hype is bakkt with substance.
Unlike other futures exchanges, this is settled in bitcoin. Hard, actual bitcoin is paid out, not fiat equivalent to the price of bitcoin.
The result is better price discovery and liquidity for bitcoin.
Also, note that Bakkt is a subsidiary of the Intercontinental Exchange, one of the most reputed financial institutions in the world with 12 regulated exchanges and marketplaces to its name. So, naturally, its brand value will also attract those investors who were otherwise hesitant to invest in cryptocurrencies due to the lack of regulation.On top of that, Bakkt will also give investors in countries with a ban on cryptocurrency trading an additional avenue to get cozy with the asset class.What about you, though? Are you optimistic that Bakkt’s forthcoming offerings will ignite another Bitcoin price rally? Share your thoughts in the comments below.Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.
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FAQs
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
How high will Bitcoin go in 2024? ›
Many experts believe it's only a matter of time before bitcoin sets new all-time highs on its path to $100,000. The next potential catalyst for bitcoin's 2024 performance will be its halving event, expected in mid-April. Halving is intended to maintain the scarcity of bitcoin and support its price.
How much will $1 Bitcoin be worth in 2025? ›
Bitcoin Overview
| Year | Minimum Price | Average Price |
|---|
| 2024 | $78,299.17 | $81,358.86 |
| 2025 | $115,285.47 | $119,353.06 |
| 2026 | $165,756.42 | $171,724.83 |
| 2027 | $240,935.90 | $249,522.05 |
8 more rowsThe index includes top tokens like $SOL, $ETH, and $WBTC- all of which are expected to see considerable gains in 2024 - making this a fantastic DeFi platform primed to explode throughout the year.
What will $1000 of Bitcoin be worth in 2030? ›
If Wood is correct and Bitcoin reaches $3.8 million, if you invested $1,000 in Bitcoin now, it would be worth $54,280 in 2030. This would result in a compounded annual growth rate (CAGR) of nearly 95%.
Is Bitcoin bullish or bearish? ›
Moving Average. On the four-hour time frame, Bitcoin is currently trending bullish with the 50 day moving average currently sloping up.
How much will $100 Bitcoin be worth in 10 years? ›
A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.
Will Bitcoin hit 100k in 2024? ›
Bitcoin (BTC-USD) continues its massive rally after the cryptocurrency briefly reached a new record high above $69,000, touching back down to $67,000 today. Some analysts believe that bitcoin could reach a record benchmark of $100,000 by the end of 2024, but retail investors haven't come off the sideline yet.
Should you hold or sell Bitcoin? ›
Historically, long-term Bitcoin investors have been rewarded for their patience, riding out significant price fluctuations to see considerable profits. If you originally invested because you believed in Bitcoin's long-term value, then selling during a downturn may contradict your original investment strategy.
How much will 1 Bitcoin be worth in 5 years? ›
We predict that Bitcoin will hold an average price of $60,000 in 2024, thanks to the Halving event, and settle more in 2025 with an average of $65,000. In 2026, we see Bitcoin trading as high as $90,000 by the end of the year. By 2030, we predict that Bitcoin could reach a high of $160,000.
The bitcoin (BTC) price is likely to weaken after the reward halving, a quadrennial event that slows the rate of growth in bitcoin supply and looks set to occur around April 19-20, Wall Street giant JPMorgan (JPM) said in a research report on Wednesday.
Is it safe to invest in Bitcoin today? ›
Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.
Which cheap crypto will explode in 2024? ›
Here's our list of cryptos that will explode in 2024:
- Dogeverse (DOGEVERSE) – A multi-chain Doge token expected to boom in 2024.
- Slothana (SLOTH) – A hot Solana meme token raising over $550K in a few hours.
- Mega Dice (DICE) – A popular crypto casino offers daily rewards to token holders.
Dogecoin ($DOGE)
The current market cap of Dogecoin is approximately $26.32 billion, with a trading price of around $0.1833. Should Dogecoin achieve the $1 value, its market cap would soar to $144.6 billion, positioning it as the third-largest cryptocurrency, just behind Bitcoin and Ethereum.
What is the next gen coin that will replace Bitcoin? ›
Unlock new digital wealth with these cryptos. Ethereum (ETH-USD): ETH is set to surge with Bitcoin's ascent and upgrades. Chainlink (LINK-USD): It seamlessly bridges DeFi and traditional finance. Cardano (ADA-USD): The crypto shows potential for significant growth post-Alonzo upgrade.
What is a realistic prediction for Bitcoin in 2030? ›
In Ark Invest's "Big Ideas 2023" report, the investment firm outlined eight key use cases for Bitcoin, projected their growth potential, and then aggregated the market size of each for the year 2030. That's how Ark Invest arrived at its $1.5 million price target for Bitcoin.
What is the best prediction for Bitcoin? ›
Bitcoin Price Prediction 2026
If major macroeconomic factors remain stable, experts predict the price of Bitcoin will continue to rise and can touch the $100K mark before settling around $85K at the end of 2026.
Will Bitcoin reach $100,000? ›
As bitcoin becomes more and more mainstream and integrated with traditional assets, it isn't inconceivable that it could hit US$100,000 in 2024 – an extraordinary feat for a invention that was worth nothing as recently as 2009.
