Why The Bakkt Launch Is A Speculative Trigger And Not As Bullish As Many Would Lead Bitcoin Investors To Believe

In the last week, Bitcoin has soared and consequently crashed. The week saw Bitcoin climb as high as $10,950 before crashing back below $10,500. One of the speculative reasons for the sharp spike in prices at the end of the week was the Bakkt launch. This has been a speculative catalyst for the last few weeks and has seen many investors flock the market. However, this event might not be as big an event as many might think. At the most, this is a short-term trigger that would be followed by a correction.

The Bakkt Launch: What's All The Hype?

The Bakkt Bitcoin settled futures contracts goes live on September 23rd. The launch has already been approved by the NYSE which was a big hurdle for the firm. This event will see many investors lured in to invest in Bitcoin which could go a long way to boosting prices. While this will be huge, it could easily backfire and see the short-term term investors overshoot and set very high targets. This could lead to Bitcoin being overbought and prices plummeting just after a short term rally.

In addition, this is not the first time Bakkt has announced the launch of the Bitcoin futures contracts. This has in the past created hype but to everyone's surprise, Bakkt has ended up canceling the launch.

For investors, a launch in the last week has signaled that Bakkt is ready for this launch. The Bakkt warehouse custody went live this week. This allows investors to deposit, store and withdraw Bitcoin. This launch comes days to the much-anticipated launch and signals a sense of readiness from Bakkt.

The $20K Alltime High Is Still On The Table

While Bitcoin continues to struggle going back above $11K and to reach its all-year high of $13K, investors remain bullish. Since Bitcoin bounced from an all-time low of $3,200 to reach $8,000, investors have remained convinced Bitcoin will reach its all-time high before the end of the year.

Several key catalysts remain key to seeing Bitcoin reach its long term targets. Some of these include Brexit which threatens to cripple Britain's economy. The U.S-China trade war has also been a key trigger. This has several given Bitcoin the boost needed to reach key targets. On top of all this, many investors are still optimistic that the SEC will soon approve the very first Bitcoin ETF soon.