JP Morgan: Bakkt Is The Reason For BTC Price Crash
On Sep 12, 2020
It’s been more than a week now, and Bitcoin still hasn’t recovered from the recent market crash. From trading at around $10,000 to going all the way down to $8,000, Bitcoin has seen a hard crash, and it looks like it is having a hard time recovering from the crash.
Many crypto enthusiasts have given various reasons for the recent downfall in the prices, but there has been one reason that almost everyone mentioned. This reason is the launch of Intercontinental Exchange’s (ICE) crypto subsidiary, Bakkt.
The Significant Factors For The Price Decline
The research team from JP Morgan, which is led by the analyst Nikolaos Panigirtzoglou stated that the recent drop in the price is because of the launch of Bakkt’s Bitcoin futures products. These Bitcoin futures are physically settled and can be considered as one of the significant factors for the price decline.
According to JP Morgan analyst, Bitcoin’s overbought technicals and long contracts exposure have just given a push to the price decline. Another reason for the sharp fall in Bitcoin price is the position liquidation that took place on Bitmex futures.
However, things have seen a change as the price is starting to recover after a decline and reaching almost $7,700. Currently, Bitcoin is trading at $8,440.85 with a bullish trend forming in the charts.