The New Binance Research Points to Bakkt as the Culprit of the Recent Market Crash

The New Binance Research Points to Bakkt as the Culprit of the Recent Market Crash
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Binance periodically releases a ‘markets overview’ which provides a professional analysis of the overall crypto market.

The most recent Binance markets overview talks about Bakkt and the recent market crash. Binance provides a table showing the monthly change for the top cryptocurrencies which clearly shows a decline in price for most cryptocurrencies. 

The Binance research mentions the ‘buy the rumor, sell the news’ strategy, where investors will buy an asset to the point where it’s no longer undervalued. However, if the market overbuys the asset, it will no longer be undervalued but overvalued and a fall in price will usually follow.

Altcoins have clearly gained some dominance over Bitcoin but it’s certainly not enough as the top cryptocurrency is still hovering 68% market dominance. The OTC desk of Binance saw a lot of traders moving out of their altcoin positions as well as Bitcoin when the price was playing with the $10k level. The paper also noted that traders weren’t looking to buy the dip and are waiting for the next move before taking any action.

JPMorgan’s take on Bitcoin’s crash

According to JPMorgan Chase & Co, the recent Bitcoin decline was due to the launch of the new futures contracts as well as an ‘unwind of long positions’. JPMorgan noted that the listing of physically settled futures contracts was a contributing factor in the crash and that the initial low trading volume of Bakkt really had no impact.

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The strategist Nikolaos Panigirtzoglou, said that while Bakkt was certainly a factor in the recent crash, it is still a good thing for the future of the market.

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