Well, the Bakkt bulls didn’t last long…
It was highly anticipated that Bakkt would see Bitcoin shoot for the stars when it was launched and just a day after it kicked off, Bitcoin experienced a flash crash below $8k.
Now trading at $8.3k, people are asking the question ‘what the hell just happened!?’
Well, there are a few theories floating around as to why bitcoin just suffered a crash.
Director of Research at The Block, Larry Cermak (@lawmaster)tweeted out that close to half a billion in liquidations occurred through BtMEX.
“Nearly half a billion in liquidations on BitMEX. Talk about a massive long squeeze 📉”
Bitcoin hasn’t been at such a level since June and the sharp drop in price is unprecedented, especially when you consider that the price fell below the $10k mark just last week.
All in all, to add to the disaster, the rest of the market is bleeding red as Ethereum and Litecoin have lost 20 percent too.
This is news that goes against what many sought out to be the launch of Bakkt’s futures platform. But the whole idea for many investors was that Bakkt would see the value of Bitcoin skyrocket. It seems the platform hasn’t been able to live up to the hype though as it only saw 71 contracts made in its first 24 hours of operation and as we all know, the price of BTC has dropped significantly.
We’ve seen drops like this before and it typically isn’t anything to worry about but bear in mind that we aren’t financial investors. Please do your own research before putting your money in a cryptocurrency and always remember to trade safe!
It will be interesting to see how this situation plays out and where bitcoin will go next. For more news on this and other crypto updates, keep it with CryptoDaily!