Bakkt Stock Price Has Been in a Freefall: Is it a Good Buy Now?

Bakkt stock price has been in a strong bearish trend since going public as concerns about the company continued. The shares plunged to a low of $1.09, which was its lowest level on record. It has moved from its all-time high of $50, which has dragged its total market cap from over $10 billion to less than $400 million.

Crypto winter continues

Bakkt Holdings is a company in the blockchain industry that serves both individuals and companies. It has two main divisions: Bakkt Crypto and Bakkt Loyalty. Bakkt Crypto makes it possible for people to buy and sell cryptocurrencies. It also makes it possible for users to pay with crypto. Bakkt Custody, on the other hand, makes it possible for companies to provide loyalty products to their customers.

Bakkt stock price has been in a strong bearish trend in the past few months as concerns about the industry continued. It also crashed because of the company’s decision to acquire Apex Crypto, a company that provides crypto solutions. The firm spent $55 million for the buyout and an additional $145 million in stock options.

Bakkt business has been struggling in the past few months because of the weak performance of cryptocurrencies. Bitcoin plunged by more than 65% in 2022 while the total market cap of all coins crashed by more than $2 trillion. 

The most recent results showed that the company had net revenue of $12.9 million, which was up by 41% year-on-year. Its operating loss jumped from $43 million to more than $1.2 billion. At the same time, the company’s cash and equivalent dropped from more than $391 million to over $159 million. Bakkt stock price will only recover if the Fed pivots and if cryptocurrency prices rebound. 

Bakkt stock price forecast

The daily chart shows that the Bakkt share price has been in a strong sell-off in the past few months. It has plunged below all moving averages. The shares are below the important support level at $1.97, which was the lowest level in May. 

A closer look shows that the Stochastic Oscillator and Relative Strength Index (RSI) moved below the oversold level. Therefore, there is a likelihood that the shares will have a strong rebound as buyers target the key resistance point at $2.