A well-recognized cryptocurrency and digital assets trader and technical analyst, Alex Krüger has recently commented that Bakkt will steer the recovery of Bitcoin throughout 2018 and the first quarter of 2019.
Nonetheless, Krüger explained that the rejection of the Bitcoin ETF filing of Chicago Board Options Exchange (CBOE), SolidX, and VanEck will lead to the crash of Bitcoin, probably back down to the crucial support level of the $6,000. This might also lead to a plunge towards the $4,000 handle, in worst case scenario.
It is to be noted that Bakkt is purportedly a strictly regulated cryptocurrency and digital asset trading platform developed by InterContinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE). It is presently in the process of establishing an ecosystem that enables both retail traders and institutional investors to invest in the digital assets and cryptocurrencies with sufficient investor protection and through products that are compliant with local regulations in the US.
Bakkt is expected to launch a cryptocurrency futures market in the month of December, this year. This will further lead to an increase in the liquidity of Bitcoin. Earlier, the US Securities and Exchange Commission rejected nine Bitcoin ETFs on the premise that the Bitcoin futures market is not of sufficient size to oversee an ETF.
Throughout the next two to three months, technical analyst Alex Krüger emphasized that renewed enthusiasm towards the market initiated by Bakkt and the VanEck ETF will allow the price of Bitcoin to climb back to major resistance levels.
Bitcoin has failed to break out of the $6,000 region since August. This is due to its low daily trading volume and relatively low trading activity in the global cryptocurrency exchange market.
Therefore, as of now, the market needs a major catalyst to engage a proper short-term upside movement, and the two financial institutions could be a major factor that may trigger the price of Bitcoin to increase.
The launch of Bakkt, the introduction of Goldman Sachs Bitcoin futures trading platform, and the release of Fidelity Digital Assets have not had any impact on the price of the dominant cryptocurrency in the past few months.
The prospect that the rejection of the ETF does not significantly affect the price of BTC still exists. However, that depends on the narrative that is set by investors and the media in the upcoming months and the expectation towards the ETF.