On 31 Oct. 2018, Alex Krüger, a renowned cryptocurrency trader and a technical analyst, said in a tweet that Bakkt will shepherd the recovery of Bitcoin throughout 2018 and the first quarter of 2019.
He further predicted that if the Bitcoin exchange-traded funds (ETF) filing of SolidX, VanEck and Chicago Board Options Exchange (CBOE) is rejected, Bitcoin prices will crash. He projected that the price will crash from the $6,000 support level or, at the extreme, to $4,000 level.
In the tweet, Krüger was categorical that:
Possible outlook for $BTC:
#1 Bull run on BAAKT & renewed ETF approval narrative early 2019
#2 ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands
#3 Halvening 2020 narrative and re-adjustments lead to sustained bull run for the rest of 2019 & 2020
— Alex Krüger ?? (@Crypto_Macro) November 1, 2018
Bakkt and VanEck-SolidX ETF Offering Optimism.
Bakkt, a regulated cryptocurrency trading platform, is working on an ecosystem that will enable institutional and retail traders to invest in crypto markets. Their platform will provide investors with adequate investor protection while offering regulatory compliant products in the US.
Bakkt has already made its intention to launch a cryptocurrency futures market in December, a move that will increase Bitcoin’s liquidity. Previously, the US Securities and Exchange Commission (SEC) rejected applications from nine Bitcoin-based ETFs. The SEC argued that Bitcoin futures market was insufficient in size to handle an ETF.
However, with the appearance of Bakkt into the cryptocurrency exchange ecosystem, coupled with the participation of futures market operator, CBOE, in the VanEck ETF has resulted in increased anticipation for the VanEck-SolidX ETF. Favourably, VanEck has an impeccable track record in filing more than 200 successful ETFs with the SEC.
Krüger optimistically opines that the Bakkt and VanEck ETF initiative has renewed an enthusiasm that will enable Bitcoin’s price to climb in the next two to three months. It is noteworthy that since August, Bitcoin’s price has oscillated within the $6,000 region. Its low trading volumes coupled with low trading activity in the cryptocurrency exchange market are behind the price resistance.
Bakkt and Vaneck ETF developments promise to infuse a short-term rally and upside movement for Bitcoin. Arguably, the development is likely to trigger a price increase for Bitcoin.
Could The VanEck-SolidX ETF Rejection Affect Price?
Interestingly, three developments in the cryptocurrency industry have not had any significant impact on the price of Bitcoin. Notably, the Goldman Sachs Bitcoin futures trading platform, the release of Fidelity Digital Assets, and the launch of Bakkt have all not showed any impact on bitcoin piece.
Therefore, even if the SEC rejects the ETF application, the price of Bitcoin may not be affected. However, that is only a possibility. Truthfully, the price will be determined by market sentiment.