Why Bakkt will start the Second Crypto Boom
Some may think that it’s crazy to talk about a ‘crypto boom’ market when the crypto market has fallen 10% today, yet there is good reason.
1. This current drop in crypto is purely a ‘trader ambush’ driven by some very smart traders, but there are no fundamentals behind the movement. No major news. No new money. Just traders playing in crypto.
The market wants to go up, there is a tiff between two camps of Bitcoin Cash and so a few whale traders smashed it down. This triggered the stop-losses of some little traders to accelerate the movement. Exchanges love the volume increase. Classic hedge fund stuff. It means nothing.
2. All the other news in crypto is positive. More institutional developments. A new ETF in Switzerland.
The crypto market is ready to grow and when it does, it is easy to realise that the total market will top $2trillion. The market is globally powered,, which is why it grew so fast in the last boom that peaked in January of 2018 at $800bn.
The only challenge is that the market needs an influx of major money from a NEW source for this to happen and the ONLY two sources of major new money are:
· the Retail Investor sector who are too scared to act; OR
· Institutional money — and they are waiting for trusted companies to launch their platforms where they can get custodial services.
Launch of Bakkt
Bakkt is an open, seamless global network for crypto assets. Anyone can buy, sell, store and spend these assets. www.bakkt.com
It looks like any number of other crypto platforms claiming to deliver a ‘global platform’ and whilst it looks a bit cheezy, the HUGE difference is that Bakkt is back by ICE.
ICE = Intercontinental Exchange, a massive global exchange company and owner of the New York Stock Exchange. It must be the world’s leading exchange company for oil, gas, utilities, fixed income, mortgages and agriculture products.
Bakkt has announced it is working with Microsoft, Starbucks and other companies to bring crypto to the public, including launching Bitcoin futures.
The official statement says that the ICE will first launch a BITCOIN contract on 12 Dec 2018.
My Prediction
The launch of Bakkt Bitcoin Futures in December will be the catalyst for the Second Crypto market boom that will see the total crypto market at $2trillion within two years. In fact, my guess is that it will reach this level by the end of 2019.
Futures derivatives for institutional traders are like sugar for kids. They go mad.
In the middle of 2018, the Federal Reserve Bank of San Francisco wrote an Economic Letter stating that “the rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence” and “it is consistent with trading behaviour that typically accompanies the introduction of futures markets for an asset.”
Whilst there are already some future contracts, the ICE launch is the sort of major news that brings in the big boys.
Given the huge numbers of big companies who are now positioned to drive this market up, they just need a catalyst. My pick is Bakkt.
What do you think?
