Skip to main content

BAKKT BEGINS BITCOIN FUTURES USER ACCEPTANCE TESTING, BTC PRICE DROPS 5%


The highly-anticipated launch of the Bitcoin futures trading platform Bakkt, owned by the Intercontinental Exchange (ICE), has begun user acceptance testing of its daily and monthly Bitcoin futures contracts. Contrary to what many expected, however, the BTC price reacted negatively, dropping by 5 percent following the announcement.

Bakkt Kicks Off User Acceptance Testing (UAT):

As Tech Tic Technologies  reported last month, Bakkt was scheduled to begin user acceptance testing yesterday. Right on schedule, the Bitcoin futures trading platform announced that it had kicked off UAT of its daily and monthly Bitcoin futures contracts.



Supposedly, participants from around the world are involved. The interesting thing about Bakkt’s Bitcoin futures contracts is that they are physically settled. This means that once each contract expires, instead of receiving the cash equivalent of the underlying asset, the user will receive the asset itself. In this case, that’s Bitcoin.


There are two types of contracts, differentiated by the settlement period. The first type will be settled daily, while the second one will allow users to receive exposure for a longer time frame and will be settled monthly.

It’s also worth noting that Bakkt is supposed to contribute $35 million into its clearinghouse risk waterfall. Moreover, the physical delivery and secure storage of Bitcoin will be carried out using an integrated custody service which will be subject to regulatory approval.

Bitcoin Price Plunges in Response:

Interestingly enough, the highly-anticipated launch of Bakkt’s UAT didn’t trigger any positive action in Bitcoin’s price. On the contrary, the cryptocurrency is down about 5 percent in the past 24 hours.

This continues a losing streak for Bitcoin, which has lost a total of 18 percent in the past two weeks and 7.8 percent in the last week alone.
At the time of this writing, BTC is trading at around $10,130 and possesses a total market cap of around $179 billion.

Comments

Post a Comment

Popular posts from this blog

Legendary Rock Star Gene Simmons Buys Cardano (ADA) Worth $300,000

Famous rock star Gene Simmons continues his cryptocurrency adventure, this time investing $300,000 in Cardano (ADA). Gene Simmons, the legendary KISS bassist, has made another dip into cryptocurrencies. The famous musician has expressed his belief in Cardano, presuming 2021 would be “the most productive year” for the altcoin. Believing in the Future of Cardano Rock star Gene Klein, aka Gene Simmons, has appeared in online social media with yet another pro-cryptocurrency commentary. This time KISS’s legendary bass guitarist has expressed his opinion on Cardano and its native digital coin ADA. In his  recent publication  on Twitter, Simmons explained one of his fundamental personal reasons for  investing  and holding the altcoin. The musician pointed out that he believes in Cardano because of Hoskinson (Charles) – Cardano’s creator and co-founder of Ethereum. In his tweet, the musician expressed his trust in the altcoin hopping on Hoskinson’s envision that 2021 would b...
Post a Comment
Read more

Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event. In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards. Is The Bitcoin Hash Rate Correlated With The Price? In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin, and there are many factors – external and internal – affecting the price. However, there is a relation between the two. While the price goes up, it’s more profitable to mine, which likely to cause more miners to turn on their mining equ...
Post a Comment
Read more

Tether Continues Printing Spree: Mints 480 Million USDT In First Week Of May

Tether is not slowing down in its USDT printing spree. The amount of tokens the stablecoin issuer has minted within the last week now equals what it printed in the first half of April. Tether Prints 480 Million USDT In 5 Days Records from Whale Alert suggest that the Tether Treasury has printed five batches of fresh tokens in the last five days, totaling 480 million USDT ($480.4 million), which was the same amount with what was minted within the first 14 days of the previous month. In a previous report , Tether created a whopping 1.58 billion USDT (appr. $1.586 billion) in April alone, making it one of the busiest months for the company’s Treasury in terms of minting new tokens. The company printed 220 million USDT ($220.4 million) on Thursday alone, and 100 million USDT ($99.8 million) more today. If the stablecoin’s printer continues producing more tokens at this rate, then we will likely see almost twice as much as the figure in April. At the time of writing, the USD...
Post a Comment
Read more