Bitcoin has broken through $10,000 and the Bakkt effect has finally appeared?

According to the push data, the highest value cryptocurrency bitcoin price rose rapidly on Monday night, and it has exceeded $10,200 as of the time of publication.

Bitcoin continued to be low-level after falling below $10,000 last Thursday, and technical indicators and market sentiment were not optimistic. But cryptocurrency investors and Galaxy Digital CEO and founder Michael Novogratz said that the consolidation of bitcoin will drive the next bull market after institutional investors enter the market.

This round of Monday's rise, Cointelegraph, zycrypto and other encryption media believe that the long-awaited bitcoin futures trading platform Bakkt in the encryption industry is one of the driving forces. The platform recently announced that its hosting service will be accepted for deposit in Bitcoin on September 6, and its futures platform will begin trading on September 23.

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Zycrypto believes that there are three main reasons why Bakkt's bitcoin futures are good for the encryption market:

First, Bakkt's bitcoin futures will be settled in kind. Current bitcoin futures contracts are settled in cash at maturity of futures, such as the Chicago Mercantile Exchange (CME), and these cash-settled futures will hardly affect the bitcoin market. Bakkt will be the first company to offer physical settlement of bitcoin futures. Simply put, the trader will receive the actual bitcoin instead of the cash equivalent when the contract expires.

There are good reasons to believe that Bakkt futures will give birth to a bull market, as Bakkt will be required to hold bitcoin to facilitate physical settlement. This would mean that the bitcoin flowing in the market will decrease, which may be a real opportunity for the price of bitcoin. In addition, the actual holding of Bitcoin will promote the widespread use of Bitcoin.

Second, Bakkt will provide a regulated platform for traders. Bakkt received approval from the New York Financial Services Department (NYDFS) and the US Commodity Futures Trading Commission (CFTC). This means that all bitcoin futures trading on the platform is protected by law. In addition, Bakkt, which stores Bitcoin, is a third-party qualified custodian. This provides investors with more trust, because in the past, cryptocurrency exchanges often became victims of hacking and led to huge losses.

Finally, although Bakkt is a young company launched in 2018, its bitcoin futures are highly likely to succeed because it is operated by the Intercontinental Exchange (ICE), which manages the New York Stock Exchange (NYSE). ). The New York Stock Exchange is now the world's largest stock exchange with a market capitalization of more than $22 trillion. In addition, ICE is also supported by large companies such as Microsoft and Starbucks, which will provide investors with more guarantees for the purchase of new Bakkt products.

Credit analyst and trader Scott Melker said earlier in August that Bakkt's bitcoin futures will attract institutional investors, which will drive long-term price increases for Bitcoin.

Image source: pixabay

By Xiu MU

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