For a longish while this year BTC is sparkling interest as its value has increased from 3100 dollars to now 9200 dollars, this rise is significant more than 140%. There are various reasons for this rise, one is that on its fall last year on November, BTC reached its bottom and this year that is why it should keep rising. True, but BTC is rising more and more and there has to be new reasons for this rise.
Few months back on a weekend, most of us crypto creatures were on shock, because after BTC rose up from 5600$ it went to 6000$ and then boom, BTC did not correct it touched 8000 dollars. Now after a period of correction where BTC tested 7500$ level, it broke resistance at 8000$ and now has reached 9000$ levels. So, yup by all looks of it, BTC may go to 10,000$ .
After this we never know, more investors would come in to benefit from BTC price rise and price could skyrocket to huge levels.
All this is true, this is one possibility but there is a lot of talk on big institutions buying cryptos now and they are waiting for something, and what could be that something? Yes, everybody was waiting for Bakkt to start since November of last year but its not started yet, signs of the operations of Bakkt beginning is showing now with the announcement from Bakkt’s COO Adam White that in July Bakkt would begin user acceptance testing (UAT) of its platform where customers can test the custody and trading model of Bakkt.
Now, Bakkt is a big deal, it’s a digital currency futures trading platform that’s backed by Intercontinental Exchange (ICE) that owns NYSE. Since ICE is a well known entity, the Bakkt platform would be a trusted platform for the big institutions to enter crypto trading. Remember in 2017, BTC went on a big high to 20,000 $ levels, reason was mostly CME starting BTC futures trading.
Bakkt makes it easy for these institutional investors as they will also offer custody and payment solutions. So, investors of the likes of JP Morgan and others can invest in cryptos hassle freely using the trusted Bakkt platform.
The essential uniqueness in Bakkt futures trading is that the settlement would be done through physical delivery of Bitcoins rather than that done in cash; that is the concerned parties of a futures contact get their payment settlements in bitcoins instead of cash. This in turn would increase the demand for BTC coins because these institutions generally trade big amounts of money.
**Other than this Bakkt has partnered with Microsoft and Starbucks and the concept here is anyone can buy coffee using BTC like these items can be bought using master card and visa cards. **
Bakkt is designed to increase adoption of BTC, so both institutional and retail investors transact using BTC.
Bakkt team meanwhile have already made arrangements to ensure that BTCs that would be in their custody fas storage would be safeguarded by a qualified custodian. These BTCs in custody are also insured against risks as an **insurance of $100 million has been taken from “global insurance carriers for this purpose. **
**Procedures of KYC would be adhered to check the practice of money Laundering. **
Therefore Bakkt is that** digital asset platform** that is **secure, transparent, compliant with regulations satisfying the requirement of many investors **who want to enter the crypto market but were hesitant to do it without a platform like Bakkt that offers safe storage/custody of BTC and has taken measures for regulatory compliance along with risk management measures while also having mechanisms to check trading and price manipulation of BTC in its platform.
In short, Bakkt should be the major reason why whales (entities with big money) are investing and holding to BTC right now, therefore its price is going up. Next popular exciting thing to await is the Bitcoin halving event that would happen in May next year that generally increases the price of BTC, more on that some other time.
Here is Bakkt website for those who are interested to understand more on this upcoming digital asset’s futures platform.