Bitcoin Futures Bakkt saw little to zero no volume trade throughout Bitcoin’s rally

The Bitcoin Futures Bakkt market had almost no trading volume over the past week. And it seems precise because of Bakkt’s relatively low volume that we can understand that the recent rise in Bitcoin price has been driven mainly by retail or individual investors.

Wall Street stands outside Bitcoin’s rally

According to Mati Greenspan, former eToro CEO, Wall Street was not involved in the Bitcoin price rally in January 2020.

In an interview with Longhash, Greenspan said:

“Wall Street has been very indifferent to the recent rise, but they are not entirely silent. The volume on CME Group’s cash-paying futures contracts has undoubtedly been raised. With that, The main volume seems to come from cryptocurrency exchanges at the moment.”


Mati Greenspan, former eToro CEO

This shows the reason directly on Wall Street, but the CME futures trading group explained high volumes, the reason being that the volume was collected from leading cryptocurrency exchanges.

The rally showed that retail investors played a pivotal role, and the increase in the value of Bitcoin from $ 6,950 to $ 9,300 on the cryptocurrency exchange BitMex, showed only a 38% increase this month.


Source: Skew

On market exchanges trading on short-term movements, the Bitcoin price can be leveraged up to 125 times the investment. Trading platforms such as BitMEX, Deribit and Binance Futures, with the description of sudden up or down movements, may indicate that a small amount of long or short contracts will be liquidated.

Bakkt only focuses on accredited investors on its platform. Bitcoin’s rally, in contrast, focused on a diverse group of investors, which has made a difference in low levels of activity and low volumes.

To evaluate the situation of low volume trading on Bakkt. It can be seen on Blockchain charts that no new addresses or users have been registered on the platform for the previous eight months, which adds to the strong reason for low volume trading.

Another reason is that Bakkt has strict rules on its platform, which does not provide opportunities for retail investors and dominates the accounts of individual investors, in conflict with Anonymity is provided by Bitcoin and Blockchain users.

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