Bitcoin price is making a 10% rally each day for the last two days. Positive news ahead of 2019 as Bakkt, the first futures that will pay in bitcoin is expected to get soon approval from regulators.
The last bull run in crypto markets started before the launch of CME and CBOE futures back in December 2017 when bitcoin price hit $20,000. After that, the price dropped more than 80 in the 2018 bear market.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
The futures launched by New York Stock Exchange owner Intercontinental Exchange is targeting institutional players who have avoided cryptocurrency because of worries that they are unregulated and prone to market manipulation.
Kelly Loeffler, chief executive of the ICE in a statement noted:
“Once digital assets have more trust and regulation, people will be more comfortable using digital assets as currency,”
“It’s great to have cash-settled, but there’s a need for physical delivery” of bitcoin, Loeffler added.
Bitcoin futures launched in December 2017 pay in dollars when the contract expires, while Bakkt futures will pay in bitcoin. This is good news for bitcoin since this will create demand pushing prices high, unlike dollar settled futures which pay in cash and maybe are responsible for this bear market in cryptocurrencies.
After the phenomenal run-up in bitcoin price a year ago, and launch of CME and CBOE futures in December. The price has tanked by more than 80%. Government controllers are investigating market manipulation in cryptocurrencies.
The Intercontinental Exchange has been working with regulators at the CFTC in the course of recent months to ensure its business model is conform to the Commodity Futures Trading Commission directions.
ICE and regulators additionally needed to deal with real cybersecurity issues and the monetary obligation in case of losses or hacks that may happen.
The Commodity Futures Trading Commission is right now assessing ICE’s strategy. CFTC officials will vote early in 2019., while the general public will have 30 days to comment.
ICE is involved in cryptocurrencies thought an investment in Coinbase one f the leading companies in crypto.
Bakkt was early scheduled to launch in December 2018 but then it was postponed to January 24 in 2019.
Do you think Bakkt is causing the bitcoin rally in the last two days? Feel free to post your opinion in the comments below.