Bitcoin continues to rebound from 3-month low

Bitcoin rose in spot trading today, for the second straight day, in recovery attempts from the 3-month low it hit yesterday, with retail and institutional investors are trying to benefit from low prices to build new positions as Bitcoin still enjoys high confidence levels in the market.

At Bitstamp, Bitcoin fell by 2.6% or $215 to $8,519, from the opening of $8,304, with a high of $8,195.  

Yesterday Bitcoin rose by 3.1%, after it hit earlier its lowest since June 10th at $7,714.

During the third quarter of this year, Bitcoin fell by 23%, its first quarterly loss this year, and the largest since Q4 2018.

Which is due to the low sentiment and the massive sell-off after the tame launch for the Bitcoin futures trading platform, Bakkt, and the slowdown in haven demand on Bitcoin despite the high risks in the financial markets.

The total market cap of cryptocurrencies rose by $6 billion today, to $226 billion, with Bitcoin and other major cryptocurrencies rebounding, as it fell yesterday to $208 billion (lowest level since May), to recover more than $18 billion in less than 24 hours.

This recovery drew support from retail and institutional investors increased demand in attempts to take advantage from the low prices to build new positions as Bitcoin still has high confidence levels.

American entrepreneur and co-founder of Morgan Creek Digital Assets Company, Anthony Pompliano, said that Bitcoin will end up in every institutional investor’s portfolio, as long as the industry's infrastructure improves.

The Bakkt platform, which is operated by the ICE Group owner of the NYSE, has traded 623 Bitcoin (BTC) futures contracts in its first week, with the total trading volume rising to $5 million.

For comparison, during the first week of trading on the CME platform in 2017, 4,099 Bitcoin futures were traded with a volume of $165 million per day.

This tame and unexpected launch for the long-awaited platform, reflects institutional investors' deliberation before building new positions, which will increase volatility.

Kelly Loeffler, CEO of Bakkt, said that the launch will bring more confidence into the crypto space through regulations and  Bakkt warehouse custody, As institutional investors prepare, volatility is expected to increase in the next few days.

Fundstrat co-founder, Tom Lee, said that Bakkt's launch is very good as it improves institutional investors' confidence in the crypto industry.

The well-known cryptocurrency investor Ari Paul also estimated that the actual delivery of Bitcoin on Bakkt will likely slow demand at least initially.

Otherwise, several major global cryptocurrency exchange operators are joining forces to create a rating system for digital assets on similarities with securities on a scale from one to five, which will help crypto asset managers who have shifted away due to the uncertainty around the cryptocurrency industry.