Bakkt arrived as scheduled, and the market fell as scheduled. How should retail investors respond?

At 8:00 p.m. ET on September 23, the highly anticipated BTC trading platform Bakkt was finally launched, and the first bitcoin futures contract was traded at a price of $10,115.

This marks the official launch of the first physically-delivered bitcoin futures product that complies with U.S. regulations.

So how did Bakkt perform on the first day of launch?

As of press time, the transaction volume on the first day of Bakkt’s launch was 28 BTC, and the transaction amount was about $280,000.

In contrast, CME BTC futures traded $460 million in their first week, with an average daily turnover of $75 million. Obviously, Bakkt's performance is much inferior to that of CME Group.

In terms of the BTC market, not only did it not welcome the positive news due to the launch of Bakkt, but it continued to fall. As of writing, it has fallen to $9,800.

Many media expressed their disappointment in this regard, saying everything: "Bakkt's good is all bad", "professional institutions will not have faith in Bitcoin", "the hype that has lasted for a year".

However, in my opinion, this is not surprising at all, and it was expected.

"Of course, the forces on Wall Street will not be so stupid as to rush in and buy directly, because this will straighten up the price of BTC, which is not conducive to their collection of chips. Therefore, they will use tools like Bakkt to suppress the price to make retail investors surrender their chips, and then sell them at a low level. Accumulate slowly."

"Of course, the forces on Wall Street will not be so stupid as to rush in and buy directly, because this will straighten up the price of BTC, which is not conducive to their collection of chips. Therefore, they will use tools like Bakkt to suppress the price to make retail investors surrender their chips, and then sell them at a low level. Accumulate slowly."

That's what we saw on the first day, not only the first day,We estimate that this will be the case for a period of time. The market will only fluctuate from time to time, and the enthusiasm and patience of retail investors will be exhausted in such a tug of war.

When retail investors see such great benefits without boosting the market, coupled with the torture of sideways trading, most of them will eventually submit obediently and honestly hand over their bargaining chips.

So what is the real purpose of Bakkt?

We must look at problems from a high-level perspective and take a long-term perspective. If we only look in front of us and don't see the dazzling sunlight behind through the clouds, it is impossible for us to see the essence of things, and it is impossible for us to grasp the future trend.

The future prospects of such an emerging financial investment field as digital currency are unlimited, and even the global central bank and supervision are troublesome. Will the traditional forces of Wall Street sit idly by?

What's more, with the current total market value of digital currency so low, the traditional forces of Wall Street have no say in it. Will they let it go?

If they have no interest in this area at all and don't care about this market at all, then why are so many heavyweight institutions involved in the initiation and investment of Bakkt?

In addition, the current daily transaction volume of the digital currency market is negligibly small compared with any mature investment market (stock market, foreign exchange market, futures, financial derivatives). So is Bakkt entering the market at this time just to earn this transaction fee?

Therefore, I have always emphasized that Bakkt entered the market to snatch the right to speak in this field, and to finally grasp the price dominance of a series of digital currencies including BTC and Ethereum. to enough chips.

Obviously, in this field, these traditional financial forces currently do not have much advantage, so they have to establish an advantage.

So how do we respond as retail investors?

I have also emphasized countless times in the article: BTC is a very safe price within $8,000, although it is not sure whether it can fall below this price. Regardless of short-term volatility risks, it is also a safe range within 10,000 US dollars.

This is the tug of war between institutions and retail investors. In this round of tug-of-war, the vast majority of retail investors will obediently hand over their bargaining chips. We hope that our readers will not become the majority of retail investors.

Bakkt is a platform for Wall Street to set up a stage to sing operas. People are acting and we are watching the drama. The actor knows what he is doing, so we can just watch the drama. Don’t watch it and really get into the drama.