Following one among its major bull rallies in the history to $19,500 USD earlier in year 2017, Bitcoin [BTC] has ended 2018 with an around ‘80% drop‘ from its uncomparable high. As Bitcoin enters 2019 with the bearish market status having suffered a steep sell-off in Dec., what is now expected from the Bitcoin [BTC] in 2019 is a big question.
Major Reasons Of Bitcoin [BTC] Downfall
In the Q1 of next year, Bakkt, a cryptocurrency liquidity supplier and exchange operated by the NYSE’s [New York Stock Exchange] parent company ICE, is about to launch a Bitcoin Futures Market.
Earlier in 2017, CBOE and CME, 2 major futures market operators within the U.S., launched strictly regulated BTC futures markets. But, they both are cash-settled markets that have min. impact on the ‘short-run trend‘ of digital assets.
In line with Jake Chervinsky, a govt. enforced defense and securities proceedings litigation attorney at Kobre & Kim, Bakkt is a physically settled Bitcoin market that guarantees the delivery of BTC to its investors.
The Bitcoin-settled market of Bakkt may have a big impact on the value of the dominant cryptocurrency as it can have an impression on the present ‘circulating supply‘ of BTC.
Adding further, he said:
“Also noteworthy is the undeniable fact that Bakkt will custody and deliver actual Bitcoins [BTC]. This simply means that the institutional inflows would scale back the supply and thus [might] increase the value too. This is however different from other regulated futures markets like CME and CBOE, that solely deal in cash-settled futures.”
The potential affect on the price of Bitcoin [BTC] by Bakkt totally depends on the demand from U.S. customers the firm sees within the initial several months of this year.
Although Bakkt has already become a significant catalyst for the recovery of major cryptocurrency Bitcoin [BTC] within the minds of the several investors, the demand for Bakkt still remains unsure, and it’s potential that due to the recent sell-off, the market doesn’t see tier of interest it primarily expected.
It’s still too early to determine whether or not Bakkt might contribute to a major increase within the price of the BTC within the mid-term. But, the launch of the first physically-settled Bitcoin Futures Market within the U.S. is positive for the ecosystem and for the institutionalization of cryptocurrencies as an asset class.
Nasdaq is additionally set to launch a BTC Futures market following the launch of Bakkt, around the time the U.S. SEC [Securities and Exchange Commission] would announce its call on the VanEck-SolidX Bitcoin exchange-traded fund [ETF] filing.
Crypto Market Stability And Bitcoin ETF 2019 Status
According to the SEC’s Commissioner Hester Peirce, the ‘approval‘ of a BTC ETF might take days or years, and investors shouldn’t wait on it. Explaining further she added:
“Don’t hold your breath. I do caution individuals to not live or die on once a crypto or bitcoin ETF gets approved. You all know that i’m working on attempting to win over my colleagues to possess a little more open thoughts towards crypto’s. I’m not as charming as some other individuals.”
Regardless of the ETF, the value of Bitcoin [BTC] can still move based on a cycle. In 2018, the trade has seen a number of foremost positive developments in recent years, yet it had min. impact on the price of the asset.
As even seen from the previous price charts, the asset has taken around sixty two weeks on an average to recover though a significant correction. Analysts usually expect BTC to bear a gradual recovery by the tip of the Q2 of this year.