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Backed: A big boost for Bitcoin or will it flop?



The launch of this year's largest institutional bitcoin product is finally upon us. Can it rejuvenate momentum in BTC markets, or will it be a major overrated flop? We'll find out tomorrow.


Countdown to Baked Big For Bitcoin?

With just one day left, the long-awaited Baked physically-settled bitcoin futures trading platform is almost here. The launch date of September 23 has been obtained by many as bullish for BTC, as it will allow institutional investors to dabble in the markets.

The contracts will be paid out in BTC, but investors are unlikely to retain it otherwise they would buy the asset directly. At the moment, it is the extreme volatility that offsets most institutions that thrive on stability.

The Bitcoin price has been limited for the past two months, indicating that very little new money has entered the markets. It is the same swing traders who buy and sell among themselves that cause the market failure.

Baked can change all that if new money starts to enter the bitcoin market. Economist Alex Krüger asked the question of sales volume and how the launch will go.

“CME bitcoin futures generated $ 460 million in sales in the first week. The current volume is around $ 700 million. The Van Eck fake ETF traded $ 0 the first week. How much volume Bakkt will attract is a key variable for the week ahead. Can you expect Bakkt to flop or start successfully? ”

The results at the time of writing were an even split with half of the 1,200 respondents expecting it to flop.

The recipe seems to coincide with the top of the large descending triangle formation on the BTC price table, so a big move is likely to follow next week. Crypto-warlord John McAfee is still bullish, adding that it provides a level of trust that the institutions have not had before.

“It is an institutionalized exchange, so I will not use it, but institutions will feel a level of trust that they had not had. It can start crypto adoption. ”

Fundstrats Tom Lee reiterated the mood and added that he is very positive to Bakkt and its ability to improve trust in institutions for crypto.

Others fear that the institutions will be the new bitcoin whales leading to greater market manipulation. Many industry observers commented that the launch of CME and CBOE futures in December 2017 led to the large bear market the following year since institutions failed to short the BTC for the first time.

Regardless, the wait is almost over and a big move is ahead of Bitcoin next week when Bakkt goes live.

Will Bakkt increase bitcoin prices or make it dump? Add your comments below.


Photos via Shutterstock, Twitter: @krugermacro, @officialmcafee


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