The market dump on Wednesday that saw billions of dollars wiped off the crypto market came with one important revelation. While most investors were crying about their lost investment, some took their time and noticed the silver lining on the dark cloud. As Bitcoin plunged to bottom at around $6,400, some crypto watchers noticed that Bakkt trading volume of Bitcoin futures surged. In fact, it reached an all-time high $43 million. This is a clear indication that institutional investors are interested in Bitcoin when it’s cheap.
It might also explain Thursday morning’s bounce. On the early hours of Thursday, Bitcoin bounced back up rallying by 10%. This has seen the asset climb back above $7,000 and set a resistance just above $7,300. Altcoins have also enjoyed the gains as most rallied by around 5% to 10% on Thursday.
As we reported, Bakkt launched a few months ago. The event was highly anticipated and tipped to be a massive catalyst for a market surge. As we further reported, the launch was more of a speculative reason than a mathematical one. It would depend on how much interest institutions had with Bitcoin. True enough, it flopped and did not see the market rally. In the weeks that followed, trading volume was low and indicated that institutional investors were not interested in Bitcoin.
Institutional Investors Want Bitcoin, Bakkt Data Proves
Now there is actual proof that these investors are interested in Bitcoin. Only thing is, they want to buy the dips and not the highs. The latest dip that saw Bitcoin reach mid $6K offered a great buying opportunity and the smart money has taken advantage. The latest data now proves two things;
The first is, the latest dip and any other dip in the near future is not such a bad thing. If institutional investors will be buying up Bitcoin during the dips, then prices will always bounce back up. It also means that supports will hold as demand will continue to grow as prices fall.
The second is that if institutional investors are buying, they will create great demand in the months and years to come, encouraging long term price growth. Institutional investors are more likely to hold out until prices are high, unlike retail investors who scare easily and sell fast when panicking. Institutional investors can bring price stability to the market and encourage holding.