Bakkt could be behind Bitcoin price crash, JP Morgan report suggests
The launch of Intercontinental Exchange’s (ICE), Bakkt, is allegedly responsible for Bitcoin’s (BTC) latest price crash, according to a report by JP Morgan Chase & Co, Decrypt reported.
The project's price fell more than 20% from $10,026 to today’s price of $7,933.
Bakkt is a bitcoin futures exchange and digital assets platform founded in 2018 by the Intercontinental Exchange (ICE) which also runs the New York Stock Exchange.
On Bakkt, investors could bet on the future price of Bitcoin, and place and receive those bets in Bitcoin too.
While the JP Morgan report noted that the Bakkt contracts are a welcomed sign of the crypto market growing up, trading has been relatively underwhelming.
Currently just 54 Bitcoin is being traded ($430,000).
But the JP Morgan report suggested that it may be “the listing of physically settled futures contracts (that enables some holders of physical Bitcoin to hedge exposures that has contributed to recent price declines, rather than the low initial volumes”.