Bitcoin back below $10,000 as institutional interest-led FUD teases crypto-market

  • 23 July 2019, Tuesday, 07:40

Bitcoin is back to the four-figure mark, dipping below $10,000 after the week began with a stutter. Following the Libra onslaught of the previous week, a massive correction was expected this week. However, it was anything but.

With Bakkt commencing their test phase for the hotly anticipated Bitcoin [BTC] Futures platform, institutional interest in the cryptocurrency market was teased. The Intercontinental Exchange’s [ICE] crypto-foray was seen as a massive step for formal BTC trade in the market since their products were physically delivered, unlike CME’s cash-settled XBT contracts.

Bakkt’s announcement set the stage for TD Ameritrade. Previously, it had been incorrectly reported that the online broker recently began BTC trading. However, further digging revealed that the product in question was on offer for some time now, but geared specifically to the firm’s professional clients.

Mati Greenspan, Senior Analyst at eToro and the first one to ‘break’ the ‘news’ summed it up by tweeting,

Very sorry. Looks like I jumped the gun. This product is for professional clients only and has been available for a while. There have been rumors that they’ll open it to the general public but seems we’ll need to wait a bit longer. Always #dyor. Don’t trust. Verify.

— Mati Greenspan (@MatiGreenspan) July 23, 2019

This tease on the digital assets institutional front likely caused a fit of FUD. While the Bakkt news saw the price briefly touch $11,000, the Ameritrade FUD shaved over 3.27 percent, dropping Bitcoin below $10,000 to its press time price of $9,940. The market cap of the coin was just below $180 billion, while its market dominance was over 65 percent, owing to an altcoins collapse.

In addition to the institutional pullback, India could also be leading a bearish charge. A government panel yesterday recommended a ban on all private cryptocurrencies, while highlighting the use of DLT. However, the panel also tabled the possibility of a sovereign digital asset by the country’s central bank, the Reserve Bank of India.