BTC - Bakkt Open Interest sees new all time high and CEO named to US Senate
The good news just keeps on rolling for Bakkt!
Bakkt saw yet another new all time high as it relates to their bitcoin futures products.
A few days back we saw a record single day volume total with close to $43 million in dollar volume traded:
https://steemit.com/bitcoin/@jrcornel/btc-bakkt-volumes-smash-previous-all-time-highs
Now, we are seeing record highs in Open Interest as well.
Check it out:
(Source: https://twitter.com/BakktBot/status/1202229886133428225)
There has been over $6 million in open interest both of the last two days.
What is Open Interest and what does it tell us?
In futures and options markets, open interest is the number of open contracts in the market and is often used to indicate the health of the market.
Very simply, open interest tells you the amount of open positions in the market. Those that have not yet been closed.
When there is an increasing amount of open interest, it can be deduced that new or additional capital is likely flowing in.
As it relates to the bitcoin contracts, it may represent participants actually wanting to hold and eventually take physical delivery of their contracts/bitcoin.
Apart from that, open interest increases can also often be used to confirm a trend seen in the spot markets.
For example, if prices are going up and there is also rising open interest, some traders view that as a confirmation that what they are seeing in the spot markets is likely to hold.
The even bigger development for Bakkt and crypto...
In possibly even bigger news, the CEO of Bakkt (Kelly Loeffler), was named to the US Senate.
This had been rumored for a few weeks now, but was up in the air as president Trump seemed to push back against the idea of Loeffler in the Senate.
As of today though, it's official:
https://cointelegraph.com/news/bakkt-ceo-kelly-loeffler-appointed-to-us-senate-seat
Loeffler will be taking the seat beginning of next year.
This is a huge win for all of crypto as Bakkt's management will now likely have at least some influence over cryptocurrency regulation.
We are finally getting some guys (and girls) on our side in Washington!
Stay informed my friends.
-Doc
I don't know but BAKKT seems to create artificial inflation for #bitcoin which is why the price now is relatively low. @jrcornell
I also don't see Trump favoring cryptos too :|
Yea, he hasn't been that is for sure. Though, he can only be in office a max of four more years. :)
Bakkt shouldn't cause inflation as the contracts settle in actual bitcoin, should they be the held to expiration.
I long for the good old days when BTC price reflected the belief that when Bakkt arrived it was going to mean higher BTC prices.
Those were good times. I miss them as well.
From what I understand Bakkt is not physically settled bitcoin and the CEO of Bakkt has close ties to Trump (who hates bitcoin). I don't think Bakkt is good for crypto at all. Especially with the new direction they are taking which is seemingly turning the ship to cash settled and making everyone use to it slowly but surely.
They are settled in bitcoin, it's just that only the contracts that are held to expiration are actually settled/exercised. That is how any futures or options contract work. Very few eventually get exercised.
And Trump actually was pushing for someone else for the Senate Seat believe that Loeffler was too moderate... I definitely wouldn't say she has close ties to Trump considering he was publicly denouncing her and supporting someone else.
Cryptocurrency now has a seat in Washington. Now the EU is getting crypto friendly as well. We'll just have to wait for what China's going to do next.
Eh... China can do what they want. They don't control the fate of crypto like they once did.
Let's hope so. Nevertheless, they can control sentiment, and that's concerning enough...