Shares of cryptocurrency firm Bakkt took a significant hit on March 18, plummeting more than 27% following the announcement that two major clients, Bank of America and Webull, would not be renewing their commercial agreements.

According to a regulatory filing on March 17, Bakkt disclosed that Bank of America informed the company it would not extend its commercial deal beyond its expiration on April 22.

Additionally, Webull, a popular brokerage platform, decided not to renew its agreement when it ends on June 14.

Bakkt Faces Revenue Hit as Bank of America Ends Partnership

These departures pose a significant blow to Bakkt’s revenue stream.

Bank of America accounted for 17% of the company’s loyalty services revenue in the nine months leading up to September 30, 2024.

Meanwhile, Webull contributed a staggering 74% of Bakkt’s crypto services revenue during the same period.

The news sent Bakkt’s stock price (BKKT) tumbling. On March 18, shares closed at $9.33, marking a sharp 27.28% decline.

The downward trend continued in after-hours trading, with the stock slipping another 2.25% to $9.12, according to Google Finance.

The latest drop adds to Bakkt’s prolonged downturn—its stock has now lost over 96% of its value since reaching an all-time high of $1,063 on October 29, 2021.

Adding to investor concerns, Bakkt has twice delayed its earnings conference call, rescheduling it for March 19.

The firm, founded in 2018 by Intercontinental Exchange (ICE), which owns a 55% stake and operates the New York Stock Exchange, is facing mounting scrutiny over its financial stability.

Bakkt Faces Potential Class-Action Lawsuit Over Market Turmoil

The market turbulence has drawn legal attention as well. The Law Offices of Howard G. Smith announced a potential class-action lawsuit against Bakkt, alleging violations of federal securities laws.

The lawsuit claims that the loss of key partnerships, combined with the postponed earnings call, contributed to the stock’s steep decline, harming investors.

This is not the first time Bakkt’s stock has seen dramatic fluctuations.

In November 2023, its share price surged over 162% to $29.71 after reports surfaced that Donald Trump’s media company was in advanced discussions to acquire the firm.

Before that, ICE was reportedly considering selling or restructuring Bakkt into smaller entities.

Further complicating Bakkt’s outlook, the NYSE warned the company in March that it had fallen out of compliance with listing requirements after its stock remained below $1 for 30 consecutive trading days.

In November 2023, Bakkt Holdings announced its expansion into both international and domestic markets.

The digital asset marketplace detailed its plans to extend cryptocurrency capabilities across numerous global markets, servicing both existing partnerships and new clients.

The post Bakkt Shares Sink 27% as Bank of America and Webull Cut Ties appeared first on Cryptonews.

An analyst has pointed out how Litecoin has slipped under a parallel channel recently and could be set to see a move to this price level.

Litecoin Has Broken Under Parallel Channel Support

In a new post on X, analyst Ali Martinez has discussed about a parallel channel for Litecoin. The “parallel channel” refers to a pattern from technical analysis (TA) that forms when the price of an asset consolidates between two parallel trendlines.

There are three types of parallel channels, but in the context of the current topic, the one where the channel is parallel to the time-axis is of interest. In this pattern, the trendlines track successive highs and lows of roughly equal magnitude. That is, the asset is consolidating completely sideways when inside the channel.

The upper line of the parallel channel is likely to be a source of resistance for the price in the future, meaning that tops can occur there. Similarly, the lower level can be where bottoms take place.

If the asset manages to break past either of these barriers, however, then it may go on to see a continuation of trend in that direction. That is, an escape above the channel can be a bullish signal, while a fall under it can be a bearish one.

As mentioned before, there are other types of parallel channels as well. Namely, the ascending and descending versions. These occur when the trendlines have a slope to them. That is, when the price’s consolidation happens towards a net upside or downside. Naturally, the ascending channel forms when the slope is positive and the descending one when it’s negative.

Until recently, the daily price of Litecoin was potentially trading inside a parallel channel. Here’s the chart shared by the analyst, that shows this pattern for the cryptocurrency:

From the graph, it’s visible that the recent bearish action in Litecoin has meant that its price has fallen under the parallel channel. If the pattern holds, this breakout would mean a bearish outcome for the asset.

Generally, moves emerging out of a parallel channel are of the same length as the height of the pattern itself. Based on this, the analyst has put a target for LTC. “Exiting this channel sets up a price move to $70,” notes Martinez.

Since the plunge under the lower trendline of the pattern has happened, Litecoin has been moving down. It only remains to be seen, though, whether the decline would extend to this price target or not.

LTC Price

Litecoin has suffered a drop of almost 6% in the last 24 hours, which has erased the earlier recovery and brought its price down to $88.