Markets watch: Bleeding Tuesday RED at its peak in cryptocurrency market

kayceefresh (56)in #steemleo • 5 years ago

Over the pass few weeks btc has been hoving around the $10k price until all hell broke loose this even losing more than $1.5k in less than 48hrs. All cryptocurrency listed on the coin market suffers same faith as there was blood every where with total market cap losing about 16% of its market cap within 24hrs.

BitUniverse
But the FA (News) we got a few days ago was a positive one about institutional investment companies stepping into the cryptocurrency trading and paving way for more people to come into the market especially with Bakkt and binance launching its future trading and alot of forks where thinking it will cause the pump in BTC but the reversed happened in short-term.

Bakkt

Bakkt, a bitcoin futures exchange and digital asset platform, launched its Bitcoin futures contracts just like binance and other exchanges. Bakkt users can now enter into daily and monthly futures contracts: Agreements wherein the buyer of a contract bets that the price of Bitcoin will go up or down by a certain date, and pockets–or pays–the difference.

Just Think of Bakkt as the New York Stock exchange, but for Bitcoin. Note, really Bakkt is run by the owners of the New York Stock Exchange (NYSE)–the Intercontinental Exchange (ICE), and its futures will run on ICE Futures U.S exchange. It’s backed by the CTFC and the NYSDFS, two of the toughest regulators in the US. Support by top regulators could be the kick the crypto industry needs if it wants to be taken seriously by mainstream financial institutions.

Tabtrader

Conspiracy theories

Bakkt’s futures contracts lets customers bet on the price of Bitcoin in Bitcoin, rather than betting on the price of Bitcoin with US dollars. Risky business if unregulated, but Bakkt’s futures contracts are settled on ICE Futures U.S.–ICE’s futures contracts exchange–and cleared on ICE Clear–ICE’s the derivatives clearing house–both of which are regulated by the CTFC.

Now my theory is that's they caused the today's dump of price of crypto-currency as Customers have control of funds only when it's them but leveraging their funds leaving the custody of their coins with Bakkt they could simple dump the price of BTC against fiat and buy back at a lower rate to avoid paying much interest/profit to their customers since payments are made in cryptocurrency as against the fiat.

Another crypto fortune-tellers took a shot at Bakkt’s principles. In a tweet, cybersecurity expert John McAfee said Bakkt “is the opposite of freedom's movement”. Though Bakkt’s launch could lead to widespread adoption of crypto, it cedes power back to the large financial institutions we love to hate. Bitcoin, supposed to be the decentralized currency of the internet, is reigned back by regulation.