Bakkt’s record-breaking streak got broken
- Arcane Research recently published an analysis of the crypto market, including Bitcoin's price performance, as well as Bakkt's volumes.
- The report noted that Bakkt underperformed for the first time since mid-October, resulting in a 33% lower total trading volume.
- The new development may have been caused by Bakkt's recent introduction of new trading products.
Arcane Crypto AS’ research division, known as Arcane Research, published a report regarding the activity within the crypto market. The report covered P2P platforms and crypto exchanges alike, but it also included Bitcoin’s price action, as well as the performance of the crypto futures trading platform, Bakkt.
The report first analysed the market, noting that it went through a flat week. Altcoins were unstable, and they moved up and down, while the top three cryptocurrencies, Bitcoin, Ethereum, and XRP, all managed to see weekly gains when it comes to their market caps. XRP is a special case, however, as its weekly gains still left it significantly below the level it had at the beginning of the year.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
In addition to that, Ethereum and XRP experienced greater correlation with Bitcoin. Finally, the report notes that the market sentiment seems to favour volatility.
The report then focused on Bitcoin, noting that its trading volume is decreasing, alongside volatility. The report notes minimal changes in Bitcoin’s 30-day volatility when compared to the previous week. But, the so.-called ‘volatility play’ that was briefly presented last week is still a possibility, and it might return in the last weeks of December. If it does come to pass, there is a real possibility of a steep rise, which was known to happen earlier in the coin’s history.
Bakkt underperforms for the first time since October
As mentioned, researchers also analysed the performance of Bakkt, with some rather interesting findings. Bakkt originally had a slow start after its launch, but things started picking up the pace since mid-October. The exchange was breaking old records with each new week, which finally ended this week.
Bakkt’s total weekly volume closed at 10,022 BTC, which was estimated to be around 33% below the last week’s volume. In other words, Bakkt underperformed, with its volume reducing by one-third.
The report indicated that Bakkt’s introduction of new products, which took place on December 9th, could have had an impact on the traders, who may have closed positions during the week. After all, the open interest on the exchange is still on the rise, especially when compared to the first half of November.