Binance Research: Bakkt Is 'Contributing Factor' to Bitcoin's Fall

Major cryptocurrency exchange Binance's newest research supports the theory that the launch of institutional trading platform Bakkt partly caused Bitcoin to drop 20%. In the latest edition of its markets overview, Binance Research, the exchange's analytics arm, singled out Bakkt as the principal event which occurred just before Bitcoin's price slip last week.

Binance: Bakkt is a "Contributing factor" in Bitcoin's fall.

As Cointelegraph reported, Bakkt debuted its Bitcoin futures to much fanfare on Sept. 23.

Commentators were underwhelmed by the offering that saw negligible trading activity despite executives promising to open up Bitcoin markets.

"Bakkt was touted by many 'crypto-observers' as an additional primary channel to bring large institutional flows into cryptocurrency and digital asset markets. It may certainly still do so in the future, as illustrated by the CME futures sluggish start and subsequent pick-up in volumes. Short-term wise though, Bakkt's disappointing start seems to have been a contributing factor to the recent price decline."

Last week, it was JPMorgan that was unimpressed, but volumes may not be to blame.

"It may be that the listing of physically settled futures contracts has contributed to recent price declines, rather than the low initial volumes."

In an ironic twist, Bakkt in some ways agreed with appraisals of its market impact.

On social media, the company described the Bitcoin price decline as "Price discovery unfolding before our eyes."

Prior to that, COO Adam White told mainstream media that Bakkt hoped its futures would aid price discovery long-term.