While the broader cryptocurrency market was melting down in late November 2019, institutional traders were stepping in to buy the dip in record numbers. Bakkt, the bitcoin futures platform backed by the New York Stock Exchange’s parent company, saw its highest daily trading volume ever on Friday, November 22, even as bitcoin crashed to six-month lows below $7,000.
TL;DR
- Bakkt bitcoin futures set a new all-time high with $20.3 million traded across 2,700 contracts on November 22
- CME bitcoin futures also saw massive volume with over 11,500 contracts traded, equivalent to $414 million
- The institutional buying came during one of crypto’s worst weekly sell-offs, with BTC dropping 18% in seven days
- Bakkt announced plans for a consumer cryptocurrency app launching in 2020 with Starbucks as first partner
- Bitcoin halving set for May 2020, cutting miner rewards from 12.5 to 6.25 BTC
The juxtaposition was striking: retail investors were panicking as bitcoin shed thousands of dollars in days, yet institutional players were flooding into regulated futures markets at unprecedented levels. Bakkt’s physically settled bitcoin futures contracts — which require delivery of actual bitcoin upon expiration rather than cash settlement — saw $20.3 million in volume across approximately 2,700 contracts on November 22, according to data from Intercontinental Exchange, Bakkt’s parent company.
CME Joins the Institutional Frenzy
Bakkt wasn’t alone in seeing surging institutional interest. The Chicago Mercantile Exchange, which offers cash-settled bitcoin futures, recorded over 11,500 contracts traded on the same day, representing approximately $414 million in notional value based on prevailing bitcoin prices. The combined institutional activity across both platforms signaled a significant shift in market composition compared to the retail-dominated rallies of 2017.
The timing was particularly notable. Bitcoin had just endured its worst week in months, falling from approximately $8,600 to below $7,000 — an 18% decline in just seven days according to CoinMarketCap data. Ethereum suffered even more, dropping 23% over the same period to trade near $143. Yet rather than retreating, institutional traders appeared to be using the sell-off as a buying opportunity.
Bakkt’s Consumer Ambitions
The record futures volume coincided with Bakkt’s broader push into mainstream cryptocurrency adoption. The company, backed by Intercontinental Exchange, Microsoft, and Boston Consulting Group, announced plans to launch a consumer-facing mobile application in 2020 designed to make cryptocurrency purchases as simple as buying a cup of coffee.
In a move that underscored its mainstream aspirations, Bakkt confirmed Starbucks as its first launch partner. The Seattle-based coffee giant had been an original backer of the Bakkt project, and the integration was expected to allow customers to convert bitcoin and other cryptocurrencies into dollars for purchases at Starbucks locations across the United States.
The Halving Horizon
All of this institutional positioning was taking place against the backdrop of bitcoin’s upcoming halving event, scheduled for May 2020. The halving would reduce the number of new bitcoin created per block from 12.5 to 6.25, effectively cutting the rate of new supply in half. Historically, bitcoin halvings have preceded major bull runs — the 2012 and 2016 halvings both preceded multi-year rallies that pushed bitcoin to new all-time highs.
Veteran trader Peter Brandt, who had been watching the market’s institutional evolution closely, predicted that the current bearish phase could extend until July 2020, approximately two months after the halving. “I think the surprise might be in the duration and nature of market,” Brandt wrote, suggesting that a prolonged consolidation could “wear out bulls” before the next major upward move.
Why This Matters
The record institutional volumes during the November 2019 crash represented a watershed moment for cryptocurrency markets. For the first time, a significant bitcoin sell-off coincided with surging institutional participation rather than a retreat. The emergence of regulated infrastructure like Bakkt physically settled futures and the growing dominance of CME suggested that the market was maturing beyond the speculative retail-driven dynamics that had characterized previous cycles.
The combination of institutional accumulation ahead of the 2020 halving, the development of consumer-facing crypto products, and bitcoin’s proven resilience — having doubled in price since the start of 2019 despite repeated drawdowns — painted a picture of a market that was building a stronger foundation even as short-term volatility remained extreme. Whether the institutions buying in November 2019 would be proven right remained to be seen, but the data suggested they were betting heavily on bitcoin’s long-term prospects.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always do your own research before making investment decisions.