Opinion: InterContinental Exchange, the parent exchange of the New York Stock Exchange [NYSE], has been the star of the cryptocurrency community’s eye for announcing a physically-backed Bitcoin derivative product. However, they seem to have experienced the flip side of the cryptocurrency community with their recent announcement that they will be advancing the launch date of the product.
This comes at a time when the price of Bitcoin tanked to its yearly low below $5,000, with the community and market experiencing a bear attack inflicting deep wounds. The coin lost 28% of its value over the past week in a drop that turned the market on its head.
Speculations say that the centralization of Bitcoin’s mining process due to cartels such as Bitmain taking over a large percentage of the hashpower of the Bitcoin chain has caused the power of price movement to rest within these parties. Moreover, the delegation of Bitmain’s hashpower on Bitcoin in order to power the hash war that is currently taking place on the Bitcoin Cash [BCH] blockchain has worsened the issue. This has caused a general decline in the sentiment on the market, which then proceeded to cause a snowball effect with miners and price.
The announcement by Bakkt, on Twitter, stated:
“Given the volume of interest in Bakkt and work required to get all of the pieces in place, we will now be targeting January 24, 2019 for our launch to ensure that our participants are ready to trade on Day 1.”
This also prompted replies from members of other communities on crypto-Twitter, with user Cerberus stating:
“Yeah right. Because of the “volume of interest” Maybe it’s because #bitcoin aka #sh*tcoin, as well as PoW / crypto 1.0 is tanking and now Bakkt has to come up with a new plan, so it’s not “Bakkt” by crap. Save yourselves the time. Focus 100% on #XRP and stay on schedule.”
Many investors have also speculated that the drop in the price of Bitcoin was caused by insider trading by those who already knew that the product’s launch was going to be delayed. Moreover, the market has entered into a regulatory stance that reduces clarity in the United States, with the Securities and Exchanges Commission, Commodity and Futures Trading Commission and the Department of Justice launching a probe into an inquiry on misconduct in the Bitcoin’s spot markets.
The probe was launched earlier this year, with both Bitfinex and Tether Ltd. receiving subpoenas from the CFTC. They are also investigating whether Bitcoin’s rise to $20,000 was fueled by manipulation through Tether.
Whatever the reason may be for ICE delaying the product, it is now evident that the bear’s power will reign uncontested until January, forcing HODLers to wait for their transient moonshot.
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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.