The cryptocurrency market has been bathing in red for a long time. November and December have faced many coins with a brutal fate and have smashed them down to their 12-months low. In this all-red scenario, Bakkt’s launch is eagerly anticipated as it’s expected to re-energize the bulls for a major bull-run. Earlier, the launch was scheduled for November. However, CEO Kelly Loeffler announced on Medium that they’ve now postponed it to January 24th, 2019. Being the bad news, it is for the current market; there’s hope that the launch of Bakkt in January would give the prices of cryptocurrencies, especially Bitcoin, an excellent start for the coming year.
Why is Bakkt so Important?
Bakkt is a federally regulated platform that is primarily focused upon driving in the institutional investment forces into the world of digital assets to move a step closer to the prognosticated mainstream acceptance of Bitcoin and other cryptocurrencies.
As one of the most common quotes goes in the investment world, the best investors invest in people, not companies. Similarly, Bakkt is not just about the idea it brings or the problem it solves; it’s also about the people it brings along with itself. Backed by the creator of the New York Stock Exchange, Intercontinental Exchange, the platform would imbibe more trust in the digital assets.
Bakkt also is backed by many well-known companies such as BCG, Microsoft, and Starbucks. Big names will surely attract a massive amount of attention to the cryptosphere which is rightly expected to escalate the price of Bitcoin and other digital assets to higher levels.
Now, the fact that optimism in the market mostly affects the prices of cryptocurrencies, the flow of money from institutional investors into the digital assets would also inspire other retail traders to consider digital assets as an investment option.
By launching a cryptocurrency futures market, Bakkt also ensures increased liquidity of Bitcoin. As a result, the probability of Bitcoin ETF being approved by the SEC would increase as the securities watchdog has by now rejected all ETFs on the grounds that Bitcoin futures market isn’t big enough.
Bringing in institutional investment to the crypto industry would also imply that there would be a shift in power that controls that market movement. Meaning, the impact of emotional decisions of buying and selling Bitcoins would be reduced to a great extent, and a more stable market would be formed.
Crypto analysts and VCs such as Alex Kruger and Tim Draper had also shown bullishness regarding the launch of Bakkt when it was supposed to launch in November. It can be said that the date of start has changed, however, the optimism for the recovery of Bitcoin price in February 2019 has remained constant.
Alex Kruger stated, “Possible outlook for BTC: First, a bull run on BAAKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb/27, massive crash, goodbye 6k, hello 4k cleanse all weak hands. Lastly, having 2020 narrative and re-adjustments lead to [a]sustained bull run for the rest of 2019 & 2020.”