Shares of Cryptocurrency trading platform provider Bakkt Holdings (BKKT) jumped in price on its recent partnership news to hit their 52-week high of $42.88 on October 29. But can the stock continue its rally amid intense competition? Let’s find out.Digital asset platform provider Bakkt Holdings, Inc. (BKKT), which is headquartered in Atlanta. Ga., failed to generate significant investor interest in its stock market debut on October 18, 2021, after combining with VPC Impact Acquisition Holdings, a special purpose acquisition company (SPAC). Nevertheless, its shares have soared 289.3% in price since its market debut to close Friday’s trading session at $42.52, after hitting its 52-week high of $42.88.
The stock surged more than 100% on October 25 on the news of the company’s partnership with Mastercard Incorporated (NYSE:MA) and Fiserv, Inc. (NASDAQ:FISV). However, the stock plunged 17% in price on October 26.
SPACs continue to face increased regulatory pressures. Last month, House or Representatives Democrats put forward a proposal that would essentially block investment banks from marketing SPAC deals to retail investors. Also, BKKT faces stiff competition from other established players that offer cryptocurrency trading, so its near-term prospects look uncertain.