The bitcoin price failed to perform, but, with bitcoin falling around 2% of its value since Bakkt started trading its “physically” settled bitcoin futures contracts, with some $8 billion wiped from the comprehensive cryptocurrency market at present.
In the meantime, litecoin, the fifth-largest cryptocurrency by market value, has instantly gone into free fall, dropping almost 10% of its value in a matter of minutes.
The reason for litecoin’s sudden sell-off was not instantly apparent, however, litecoin is down some 50% since June, considered a response to the gains litecoin made earlier in the year as traders cashed out of their positions.
Litecoin, which has been known as the silver to bitcoin’s gold, surged in the first half of 2019 as traders bet an August so-known as halvening of the cryptocurrency, where miner rewards for finding blocks are cut, putting a squeeze on supply, would spark a crypto bull market.
Bitcoin is itself because of undergoing a halvening event in May next year, and many have suggested this will be the catalyst for the next major bitcoin leap higher.
However, many had also anticipated bitcoin and the broader cryptocurrency market to get a boost when the Bakkt platform started operating immediately.
Bakkt, an Intercontinental Exchange-backed bitcoin and crypto platform, was unveiled last year and boasted computing giant Microsoft and coffee chain Starbucks amongst its partners–promising to open up bitcoin to institutional investors and bring crypto spending to the high street.
Trading of Bakkt’s hyped “physical” bitcoin futures that means that traders and investors should not in a position to sell more bitcoin than they have have been muted at present.
There were just five bitcoin futures contracts traded through the platform after the first hour, rising to 28 ten hours after launch.
Traders and bitcoin industry executives have been quick to play down Bakkt’s slow start.