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Bitcoin Futures Traded on Bakkt See 100x Growth Since September. Is Another Bull Run Near?

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Thu, 11/28/2019 - 07:50
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  • Bakkt's trading volume have been on a tear as of recently, but does it really matter?

Cover image via 123rf.com
Contents

Anyone who dared to call Bakkt a flop now has to eat his words. The ICE-baked Bitcoin futures exchange has experienced 100-fold growth since its its inception in September.

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Starting on a cold note 

Bakkt already became a buzzword in the cryptocurrency industry even before its launch. The company, which is backed by New York Stock Exchange owner Jeffrey Sprecher, was supposed to be a game changer since it promised to offer physically-settled Bitcoin futures, a completely new product.   

However, Bakkt was off to a cold start after its underwhelming trading volumes dissipated all europhia. As reported by U.Today, a group of JPMorgan strategists even alleged that the company's disappointing launch was to blame for the massive Bitcoin price drop that came shortly after. 

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Bitcoin Futures That Are Settled in Cash to Be Launched by Bakkt in December - READ MORE

Don't underestimate Jeffrey Sprecher

Fast-forward to November, Bakkt has already proven that it's not just a fad. As reported by U.Today, its trading volumes have been routinely recording new all-time highs as of recently. On Nov. 27, Bakkt's daily volume reached a whopping 5,671 BTC ($42.5 mln), setting yet another record. 

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Bakkt Plans to Take on CME with Cash-Settled Bitcoin Futures - READ MORE

Is this paper trading?

With that being said, crypto analyst Alex Krüger says Bakkt's exploding volume is not necessarily good news for Bitcoin bulls. The thing is, Bakkt's daily futures contracts, which are actually indicative of institutional demand for the top cryptocurrency, have zero volume. It's all just "paper trading", which means that Bakkt is no different from Chicago-based juggernaut CME Group.                

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ripple Unleashes One Bln XRP from Escrow, Community Expects Price to Drop

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  • It is the first day of the month and Ripple has released one billion XRP from its escrow wallet. The community traditionally expects a price drop after such massive dumps

Cover image via stock.adobe.com

It is the first day of another month – this means that Ripple has lavishly thrown XRP from its escrow wallet – one billion coins. Since the start of 2020, this monthly dragon-sized amount was withdrawn in two portions of 500 mln XRP each.

XRP escrow
Image via Twitter

While the XRP price is in the green zone, trading at $0.173095 on CoinMarketCap, the comments under the tweets about the XRP release signify that the community is either indifferent (having got used to these releases already) or is expecting another price drop in the short term.

In January 2018, XRP, the third-largest cryptocurrency, reached an all-time high of nearly $3. Since then, XRP has been light years away from the ATH.

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Many skeptics say that the XRP price is not going to rise even in the long term, mocking those who remain faithful, holding bags of the coin.

As earlier reported by U.Today, many in the community believe that regular XRP releases made by Ripple prevent the price from rising and reaching at least $1. In 2019, a petition was set up on Change.org by crypto influencer ‘Crypto_Bitlord’ who wanted Ripple to stop dumping XRP.

Curiously, later on, another petition appeared on the same platform, requesting Ripple to accelerate the release of XRP in order to increase the coin’s adoption, which would assumingly lead to a massive price surge.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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