ICE-founded Bakkt CEO affirms ‘crypto isn’t going away’ despite heightened volatility

1 month ago
3 mins read

The 2022 cryptocurrency market meltdown has partly cast doubt on the sector’s sustainability, with investors incurring losses. Notably, the crash has recorded casualties, with several businesses running into bankruptcy. 

However, CEO of digital assets management firm Bakkt Gavin Michael, while speaking during an interview with Yahoo Finance on August 19, suggested that the crypto market is here to stay. 

The executive noted there is still interest from retail and institutional investors, stating that most entities are now conversant with how the sector operates, especially with the volatility aspect. 

According to Michael, following the recent dips, interest in the market is driven by the possibility of embarking on a rally in 2023. 

“Crypto isn’t going away, there’s still strong interest and momentum with our partners, many of whom are multinational companies, so they’ve been watching this space for a long time . They understand the peaks and the troughs that we’re seeing we also see consumer interest in crypto remaining solid. <…> We expect to activate our crypto services in the second half of the year, and we’ll see a significant increased ramp up through  2023,” Michael said.

Bakkt’s increasing inroads into crypto

Notably, Bakkt, which operates a crypto trading platform for institutional investors continues to expand its inroads into the digital assets space. Recently, the platform announced a partnership with Visa (NYSE: V) to offer crypto debit and credit cards.

Furthermore, the ICE-founded platform has an existing partnership with Mastercard  (NYSE: MA) enabling companies to offer crypto as part of their loyalty reward programs.

Michael adds to the list of cryptocurrency players divided over the market’s next course of action. 

This comes after the general crypto sector failed to sustain the recent two-month rally, with Bitcoin (BTC) facing a battle to sustain the price above $20,000. By press time, the flagship crypto was trading at $21,300

Notably, as reported by Finbold, senior commodity strategist at Bloomberg Intelligence Mike McGlone has maintained that after the 2022 first half crash, the crypto market is ready to lead other asset classes in a rally in the second half of 2022. 

Skepticism over market crash 

Elsewhere, economist and Bitcoin skeptic Peter Schiff has maintained that the recent gains in crypto markets offered investors a chance to cash out. According to Schiff, the recent crypto market crash indicated an upcoming bubble burst for the market. 

It is worth mentioning that amid the sell-off, crypto lending platforms Celsius and Voyager Digital filed for bankruptcy, citing volatility issues. At the same time, entities like the crypto exchange platform Coinbase have been forced to restructure their businesses as a reaction to the new market reality. 

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Justinas Baltrusaitis

Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.