Bitcoin price plummetes to $7000 price mark that was last experienced in May, to surpass the high volatility of the crypto market in the last two months, amid new developments by Bakkt and alleged Crypto exchanges crackdown in China.
At the time of press, coincap indicated an average of $7,227.61 from a daily low of $7080.90 yesterday morning. The price drop occurred a short while after Bakkt announced its launch of ICE futures in Singapore, which resulted in an increase in Bakkt contracts trade volumes.
Bitcoin woes started in September 2019 and have been trying to stabilize amidst major volatility experienced by other cryptocurrencies as well.
Bakkt Linked To BTC Price Drop in The Past
Investors have been in the past keen to observe the Bakkt influence on bitcoin, as this is not the first time that a move by Bakkt caused a drop in BTC prices.
As the provider of the first US bitcoin futures with physically backed-up contracts, Bakkt is significant to the direction of the cryptocurrency. The General Counsel at Compound Finance, Jake Chervinsky stated that Bakkt is important to the adoption of bitcoin because:
“It offers a way for large risk-averse institutions to buy and custody bitcoin through end to end regulated systems approved by CTFC and NYDFS and backed by the sterling reputation of ICE.”
“The month of September was a bloodbath for the crypto-markets. Bitcoin stayed above $10,000 for most of June through September but has since plummeted to $8,000. One possible reason, explaining Bitcoin’s price drop, could be the general indifference towards the much-hyped release of Bakkt, as BTC prices dropped over $1,000 a day or so after trading began.”
The report also stated bitcoin price drops could be accredited to the crypto-industry phenomena that are profoundly affected by opinions and speculations.
Bitcoin is the most traded cryptocurrency in the world, with billions of dollars in trading volumes every day. Yet, it suffers when large BTC holders decide to move significant BTC volumes and cause recurrent price volatility.
China’ Crackdown on Local Illegal Crypto-Exchanges Also Linked To BTC Plummet
The people’s bank of china today released an official statement that declared the bank would increase supervision and control to combat virtual currency transactions:
“Recently, in the process of promoting blockchain technology, virtual currency speculation has shown signs of rising. In order to further strengthen the prevention and control efforts, according to the overall requirements of the national Internet financial risk special rectification work, the Shanghai Financial Stability Joint Conference Office and the Shanghai Headquarters of the People’s Bank of China and the relevant departments at the Shanghai Municipal Level have launched special projects on virtual currency-related activities in Shanghai.”