Binance’s Latest Research Says The Failing Cryptocurrency Market is All Bakkt’s Fault
- CEO of Bakkt believes that the launch of the futures contract was meant to be a “milestone for the industry.”
- Bitcoin dropped down to the $8,000 price level during the month of September.
The cryptocurrency industry isn’t doing well for the month of September, and everyone wants to know why. Binance Research has been investigating the potential cause of this destruction, leading them to believe that the drop started with the failure of Bakkt’s launch.
On September 23rd, the cryptocurrency industry was interrupted by the beginning of trading for the Bakkt Bitcoin futures contracts. Many analysts and proponents had hoped that this would be a major moment for the cryptocurrency market, but nothing could be further from the truth. With hopes of bringing in institutional investors into the market, many consumers believed that there would be an influx of funding for the many crypto assets on the market as well.
Bakkt was set to be a “milestone for the industry,” as Bakkt CEO Kelly Loeffler described the launch. She added,
“As institutions enter this emerging asset class, they will continue to look to secure infrastructure and the regulatory certainty that it provides. Importantly, these futures contracts now serve as benchmarks established by a trusted price discovery process upon which investors can rely.”
However, there are strategists with JPMorgan that argue a much different path. Instead, they state that that flop of Bakkt correlates directly with “the steep cryptocurrency market crash.” The Binance Research report links Bakkt to the drop in Bitcoin’s price, which has dropped by over 6% in the last 24 hours and is hanging around the $8,000 price level.
The report states that the “general indifference” felt by investors over the hyped up Bakkt release could be the culprit of Bitcoin’s losses. Furthermore, within about a day of the commencement of trading with Bakkt, Bitcoin’s price fell by over $1,000. The report continued,
“Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.”
Still, these developments haven’t made the Binance Research team feel pessimistic or worried. Instead, the team believes that the cryptocurrency industry has seen better days, and it will see those days again. Researchers commented that October will be “exciting,” as the public waits to see how rising gas prices for Ethereum are impacted and if Telegram will officially launch their Open Network.
The September 2019 market overview report by Binance Research was recently released, focusing on the uneventful cryptocurrency industry that has lasted throughout September. It also notes the fall that the market experienced on September 24th. In total, for the whole month, the total valuation remained below $300 billion. In fact, according to reports from TradingView, the total market cap for all cryptocurrencies is just $213 billion right now.
The report sheds light on two derivatives platforms that were launched in September by Binance, Binance recently announced their acquisition of a trading platform called JEX on September 2nd, which allows for trading of Bitcoin futures and Crypto options. Within 11 days, Binance Futures was launched. CME Group is planning to launch their Bitcoin futures by the start of 2020.