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Analyst: Bakkt Could be a Huge Catalyst for Bitcoin; Is a Price Surge Inbound?

Analyst: Bakkt Could be a Huge Catalyst for Bitcoin; Is a Price Surge Inbound?

July 22, 2019 NewsBTC

Despite facing multiple long delays, the highly anticipated Bakkt Bitcoin futures platform has finally began testing, and many analysts are now noting that the release of this platform could greatly enhance BTC and the overall crypto markets.

Importantly, one analyst group is now noting that the official launch of this platform could be a “huge catalyst” for Bitcoin and the aggregated crypto markets, which could ultimately help provide some stability to the highly volatile markets.

Bakkt Begins Official Testing of Bitcoin Futures Platform After Six Months of Delays 

Although Bakkt has been delayed on several occasions, it does appear that the platform is rapidly coming to fruition, which could be a very positive thing for the markets.

The key to the Bakkt platform that makes it more advantageous to the markets than other futures platforms is that all trades are physically settled with Bitcoin, which means that all profitable trades are paid out with actual Bitcoin, rather than a sum of cash that is equivalent to the value of the BTC.

“Bakkt begins testing on Monday. The hype is bakkt with substance though. 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,” Rhythm Trader, a popular crypto analyst, explained in a recent tweet.

Importantly, while keeping this key factor in mind, it is clear that Bakkt – should it be met with great popularity – could provide a significant amount of benefits to the nascent markets.

Sam Doctor, a strategist at Fundstrat Global Advisors, recently spoke about the platform in a recent tweet, explaining that he believes it could be a “huge catalyst” for the crypto markets in the near-future.

“We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE,” he said while referencing a chart with key takeaways from the summit.

Will Bakkt Lead to Positive BTC Price Action? 

Analysts do believe that Bakkt will ultimately alter Bitcoin’s price action, and could contribute to some of the volatility that is anticipated in the coming days, weeks, and even months.

Chonis Trading, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that he believes that Bakkt and the CME Futures gap that exists around $8,500 could contribute to a volatile week ahead.

“$BTC – closes out the week with many mixed signals. Bear cross on EMA12,26 Daily but Bull Bounce from EMA12 on weekly and regained cloud support. #CME gap and #Bakkt tomorrow should make for a dynamic week of #bitcoin price action,” he explained.

As the week continues on and Bitcoin’s price action continues to unfold, it is highly probable that analysts will soon understand whether or not the cryptocurrency’s bulls or bears will take the wheel in the near-term.

Featured image from Shutterstock.

The post Analyst: Bakkt Could be a Huge Catalyst for Bitcoin; Is a Price Surge Inbound? appeared first on NewsBTC.

Source: https://www.newsbtc.com/2019/07/22/analyst-bakkt-could-be-a-huge-catalyst-for-bitcoin-is-a-price-surge-inbound/

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