Bakkt, the bitcoin trading platform of the Intercontinental Exchange (ICE), officially started “stable” recently, but its surprisingly “quiet” has disappointed many people. Many crypto-investors have been waiting for Bakkt to bring “super big”. The bull market, the result is disappointing. After two weeks of launch, Bakkt seems to be starting to work harder. On Thursday, October 10, the exchange reported that it had traded 224 BTC contracts on the same day, equivalent to approximately $1.83 million. This figure is 3,100% higher than just seven bitcoin contracts traded on the first day just two weeks ago.
Bakkt this bull market engine warm-up is over, start to force?
Bakkt has high hopes from many investors, hoping to stimulate the organization's interest in possessing physical BTC. However, at this time, the size of the Bakkt transaction is still small compared to the global BTC transaction volume. The sum of the volume of transactions on some major exchanges exceeds 2.4 million BTC per day. At the same time, the Bitcoin network trades nearly $1 billion a day, even higher on active days.
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Large exchanges are used to holding more than 100,000 BTCs in cold wallets. In contrast, Bitcoin Lightning Network currently has a capacity of 814 BTCs.
Bakkt was originally expected to be launched earlier, but a series of reviews by the US Commodity Futures Trading Commission (CFTC) extended the final release time. Due to the strong performance of the CME futures market and the upcoming second anniversary, the future trading volume of bitcoin is expected to increase.
Bitcoin rebounds, Bakkt trading volume rises
Bakkt also indicated that the agency's interest in investing in Bitcoin will suddenly increase, as the trading volume of the platform reached more than $200,000 in 24 hours the day before Bakkt's record-breaking transaction. A stronger futures market may begin to attract bitcoin miners or traders seeking to hedge spot price risk.
The current surge in trading volume also indicates that Bakkt has responded to the activities of the spot BTC market, and that the amazing performance of Bakkt may be related to the increase in the spot price of Bitcoin. On Wednesday, bitcoin prices rose to a two-week high, breaking the $8,500 mark; this is one of the biggest one-day gains in a month. In the past few days, BTC prices have risen and trading volume has exceeded $20 billion in 24 hours. As the BTC reached a daily high of $8,627.71 later on Wednesday, Bakkt's activity picked up.
At this point, it is too early to say whether the launch of Bakkt will affect the price of BTC. According to previous records, after the launch of CME Bitcoin futures, the price of BTC fell immediately and the bear market time extended. Bakkt's record-breaking day is also at a time when other indicators indicate much lower interest in the institutions of the Bitcoin fund giant Gray Bitcoin Investment Trust (GBTC).
How do you see the skyrocketing volume of Bakkt? Can this trend continue?