A blast from Bitcoin’s past is making a comeback, reaching a new all-time highs trading volume after abysmal launch turnout sent the cryptocurrency’s price tumbling last year.
What’s going on with Bakkt that suddenly has its Bitcoin Futures trading desk soaring in trading activity?
Bakkt The Truck Up: Remembering The Reason For Crypto’s 2019 Collapse
Last year, Bitcoin’s safe haven narrative first took shape, as the cryptocurrency began to rally alongside gold as tensions mounted between the US and China.
Little did investors know, those buying up those safe haven assets then were actually preparing for a pandemic and hyperinflation as a result of the stimulus efforts to battle it.
Regardless of the outcome this year, last year’s Bitcoin rally turned out to be a dud in the end. And support at $10,000 then was ultimately lost due to the launch of the much anticipated Bakkt Future trading desk, falling on its face.
The Intercontinental Exchange owned, physically delivered Bitcoin Futures contracts platform was to be the next big thing to hit crypto, that was said to open the flood gates to institutional adoption.
Except when the platform launched, there was barely trace of activity. Bitcoin price plunged through $10,000 after weeks of trading above it, and it has taken until now to get back above.
Bakkt bitcoin futures breaks another all-time-high! pic.twitter.com/T9cu0MD4r8
— Unfolded (@cryptounfolded) September 18, 2020
Why Is Trading Volume Surging On The Bitcoin Futures Trading Desk?
But Bitcoin price is back above $10,000, and a year later here we are. At the same time, however, Bakkt trading volume is rising, and has even set a new all-time high of over $175 million in trading volume.
It’s not clear why there’s suddenly interest in Bitcoin on Bakkt, after a year of stagnancy. However, all growth needs to begin somewhere, and it is possible it has taken this long for institutions to get onboarded and take notice of the platform.
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Or perhaps, it’s the recent move from hedge fund managers, and even corporations like MicroStrategy who are hedging against the coming inflation, that has inspired traders on Bakkt to place bets on Bitcoin through Futures contracts.
BTCUSD Bakkt Launch September 23 & Losing $10,000 Support | Source: TradingView
Interestingly, Bakkt reaching all-time high comes just after Bitcoin price retestied the exact support level, to the candle, that was lost on September 23 when Bakkt first launched.
That line, has acted as the crypto asset’s strongest resistance yet, and thus far, it has held this time as support. If it continues to hold, Bitcoin may see a new all-time high alongside Bakkt’s surging record trading volumes.