Bitcoin Price Stems Decline as Bakkt Readies Futures Launch Next Month

Bitcoin’s price advanced Friday and stemmed some of its brutal weekly decline after Bakkt confirmed that it has been cleared to launch its physically-settled bitcoin futures contract next month.

BTC/USD Update

The bitcoin price was in recovery mode on Friday, reaching an intraday high of $10,476.13 on Bitstamp. The largest cryptocurrency is currently valued at $10,373, having gained 0.7%. Over the 24-hour trading cycle, bitcoin has recovered 3.2%.

Bitcoin’s relative strength index (RSI) has recovered over the past 24 hours, but continues to hold near its lowest level of the year. The RSI plunged to the low 40s for only the second time since February.

Bitcoin’s price shows signs of stabilizing after brutal weekly decline. | Source: TradingView.

At current values, bitcoin has a total market capitalization of $185.7 billion, according to CoinMarketCap. Spot volumes held steady above $1.6 billion, according to Bitwise.

Bitcoin’s rally failed to spread to the broader cryptocurrency market, with most of the majors trading mixed-to-lower. The total market capitalization of all coins hovered just below $270 billion. As a result, bitcoin’s market dominance rate increased to 69%.

Read: Bitcoin Decouples from Gold Following 13% Weekly Plunge; Altcoins Lose $10 Billion in Market Cap

Bakkt Cleared for Launch

Bakkt, Intercontinental Exchange’s new subsidiary, confirmed Friday that it been cleared by the New York State Department of Financial Services to launch its highly anticipated bitcoin futures market. Kelly Loeffler, Bakkt’s CEO, says the new bitcoin futures market is planning to launch September 23.

“One year ago, we announced our ambitious vision to bring institutional infrastructure to digital assets with an end-to-end regulated marketplace,” Loeffler said in an official blog post. “That vision will be realized on September 23 when Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.”

The creation of Bakkt more than one year ago was seen as a major step in bringing cryptocurrencies to mainstream investors. The futures contracts have already been greenlighted by the Commodity Futures Trading Commission (CFTC) but their launch was delayed several times over the past nine months.

Momentum began to pick up last month after Bakkt finally began testing its physically settled futures contracts. At the time, Hacked reported that the marketplace would be ready for launch by the end of the third quarter.

A delayed launch hasn’t stopped Bakkt from raking in hundreds of millions of dollars in investor funds. The platform is backed by some of America’s biggest companies and has already raised $740 million in Series A funding.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Charts via TradingView. 

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi