Bitcoin Spikes Up With $1,000 After Bakkt Announcing Futures Trading Platform Launch
The Bitcoin community was enthusiastic about online crypto exchange Bakkt’s plans to release Bitcoin Futures trading to its platform. Within 48 hours after Bakkt announced they have a green light to launch physically-settled Bitcoin Futures trading, the price of Bitcoin surged up with over ten percent.
The spike happened on Friday, shortly after Bakkt announced that regulators gave the company the green light to launch a Bitcoin futures trading platform. The launch has been already scheduled for September 23rd.
Ordinary futures are cash-settled, so when the expiry date of the contract is reached, the difference between the open and close of a position are settled using cash. Bakkt takes a different approach — their settlement would be done with Bitcoin, which means the amount of Bitcoin in circulation will decrease.
The vast amount of Bitcoins will be stored in Bakkt’s Digital asset warehouse.
The news Bakkt is launching a physically-settled Bitcoin Futures trading platform saw huge approval among crypto traders and enthusiasts. “We are maturing. The Bakkt news is the best bullish move in Bitcoin’s history,” Scott Melker, known as “The Wolf of All Streets,” stated in a Twitter post.
Melker also stated that Bakkt’s move is opening doors for more institutional players to enter the crypto sector. The price of Bitcoin can increase further — the lower the number of circulating BTC is, the highest peaks in BCT price are expected to take place.
On the other side, the bearish trend for Bitcoin seems to continue, despite the price gain and the increase in trading volumes. Bitcoin tested $12,000 but was quickly rejected, falling to sub-$10,000 levels. As of press time, Bitcoin trades for $10,669.49, recovering from a drop to $10,645.