The Bitcoin and cryptocurrency market suddenly collapsed today and the Bitcoin price dropped more than 10% just after the closely watched Bakkt crypto platform went online  Bitcoin's major competitors, including Ethereum, Ripple's XRP, Litecoin and Bitcoin Cash, suffered even greater losses, falling from 15% to 22%.
off, which wiped $ 20 billion off bitcoin and another $ 5 billion on the broader cryptomarket, was due to the cautious reaction to the introduction of the highly anticipated bitcoin and cryptocurrency platform from Bakkt.
Bitcoin cash led today's downturn n lost a whopping 22% of its value, while Ethereum lost 1
5%, Litecoin 14% and Ripples XRP 10%.
Bakkt, an Intercontinental Exchange-powered Bitcoin and Crypto platform, went online Sunday night after its launch revealed too much fanfare last year – with computer giant Microsoft and Starbucks coffee chain among its partners.
The total trade in Bakkt's hyped "physical" Bitcoin futures, ie traders and investors can not sell more bitcoin than they actually have, came to 72 bitcoin by the end of the first day, compared to over 5,000 bitcoin on the first day of CME futures were traded in cash.
"The disappointing opening of Bakkt signals to the crypto community that institutions are less willing to invest in Bitcoin on the order than assumed, meaning that the price was likely to be too high and due for a correction," said Alex Mashinsky, CEO of crypto-credit firm Celsius Network.
"What we've just seen are short sellers and momentum traders who are piling up to make things worse, and now we're back in support."