Friday, August 12, 2022

JPMorgan analysts blame Bakkt’s debut for the BTC crash

The Takeaway:

JPMorgan researchers believe launch off Bakkt's futures contracts might have fueled the recent crash in the price of bitcoin. Many from the crypto community had excepted that the launch of ICE's Bakkt would boost the BTC market.

According to JPMorgan Chase & Co, the launch of Intercontinental Exchange’ Bakkt might have triggered the crash in the price of bitcoin. Bloomberg reported that JP Morgan released a report on Friday saying it may be the listing of physically settled futures that contributed to the recent price declines of bitcoin. 

Last week bitcoin dropped from around $9,500 to $8,000 in the space of 24 hours. Several analysts also echoed the same opinion and blamed the lower than expected volume for the Bakkt’s futures contract for the fall in bitcoin’s price. Other reasons that might have triggered the crash include authorities getting strict and the recent fall in the hash rates. 

However, Nikolaos Panigirtzoglou the head of the research team acknowledged that the introduction of physically delivered futures would help the market in the future and is a step towards maturity. The analysts further added that bitcoin’s overbought technicals and long contracts also played a role in the decline of the price of bitcoin. 

Since the crash, bitcoin has made a minor recovery, after trading below $8,000 yesterday, it is now changing hands at $8,455. Many trend analysts are still bearish on bitcoin as several have predicted that it might go low as $6,000 this month. Let us know in comments where do you the price of leading cryptocurrency is heading?

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Thomas Gonzales
Thomas Gonzales
Thomas is a Stanford University graduate who loves to talk about the financial world. Though he has a demonstrated history of working in the real estate industry but ever since he came into the crypto space, he has developed a keen interest in researching and writing about bitcoin and blockchain.

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