JP Morgan analysts take a look at Bitcoin’s fall after Bakkt


As Bitcoin lost about 20% of its value after Bakkt’s disappointing launch, JP Morgan analysts came forward to blame Bakkt (and its Bitcoin futures contracts) as the main responsible for the unexpected fall of the crypto market.
The analysts of the American investment bank explained that the introduction of the Bitcoin futures contracts delivered by ICE (Intercontinental Exchange) and Bakkt, its digital assets platform created for institutional investors, forced the recent sell-off in the market.
Immediately after Bakkt’s launch, Bitcoin’s price lost more than $1,000 in less than an hour moving under the $8,500 limit, a level untouched from June 2019.
The entire blockchain space has been waiting for a long period of time to see the launch of Bakkt’s Bitcoin futures contracts that would attract institutions into the crypto market and this event has been announced and hailed as one of the most important moments that would greatly affect the cryptocurrency space.
Bitcoin futures contracts from Bakkt are relevant for the market because they are settled in Bitcoin and not in fiat as we had until now with CME. This means that the institutions that are willing to invest in these products have to find reliable custody services for Bitcoin and make sure they also have good insurance policies in place.
As many voices in the industry observed, Bakkt’s futures would act to discover Bitcoin’s true price in the market and this would eventually lead to more maturity of the crypto space.
Though we may find at this moment numerous points of view and opinions in the media dedicated to cryptocurrencies, some of them expecting a continuous fall of Bitcoin’s price while others waiting for a return to higher levels, we have to appreciate the irony of having JP Morgan’s traditional banking analysts displaying a real interest for the crypto market and especially for Bitcoin’s price.
To see major banking institutions showcasing any slight interest for Bitcoin and cryptos would have been something totally unexpected some years ago. JP Morgan representatives are actually some of those voices belonging to the traditional banking space that used to throw ironies and jokes at Bitcoin and the crypto industry. Looking back, we may say that Bitcoin walked a long way towards mainstream acceptance.

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