Business & Investment

What Does Coinbase List Mean for Bitcoin and Other Cryptocurrency Prices

Pablo Goncher | LightRocket | Getty Images

Bitcoin is skyrocketing to reach record highs, Prior to Wednesday’s crypto exchange stock debut Coinbase, And some analysts say this offering could be a crucial moment for cryptocurrencies.

Bitcoin Was trading More than 5% increase on TuesdayIt is over $ 63,220, according to Coin Metrics. The direct listing of Coinbase is expected to be a watershed moment for the crypto world and may bring new offers from other crypto-related entities. Coinbase is expected to cost more than $ 60 billion and reach $ 100 billion.

“It’s no surprise that cryptocurrencies are running. Some of this is for the crypto community and no one wants to sell it before the Coinbase offering,” said Tom Lee, founder of Fundstrat. I am. “In the crypto market, if the seller is dormant, the price will continue to rise … it’s like you’re on strike in front of the list.”

Other cryptocurrencies have also surged. ether, For one, it was trading at a new high on Wednesday. According to Coin Metrics, it was up 6.7% to $ 2,280. Analysts said Coinbase’s debut has increased interest in cryptocurrencies throughout the world, attracting new investors and encouraging other entities related to the market to issue their own shares.

“As the market awaits this IPO, we find that investors are talking more about Bitcoin as a hedge against rising inflation and the potential for a weaker dollar, and extreme amounts of government spending and debt. “. Julian Emmanuel, Head of Equity and Derivatives Strategy at BTIG.

Emmanuel said how Bitcoin reacts this week could set the tone for the crypto market in the coming weeks. He said there was considerable resistance at $ 62,000, which is now blown away and has solid support at a 50-day moving average of close to $ 54,900.

“You’ll notice that the entire space is going a very long way. There are signs last week or two, and NFTs have a little indigestion. [nonfungible tokens] market. “We saw NAV discounts on one of the more established trust products,” Emmanuel said. “It tells us if we’re trying to make short-term deals with soaring prices such as Bitcoin and ether. This week. It’s not a good reason to own something that has fallen 30%, 40%, 50%, and has already done so a couple of times, based on the success of capital market activity. “

The value of the Grayscale Bitcoin Trust It is below the value of your digital assets Marlton LLC, an activist family office, sent a letter to Grayscale Investments Bloomberg reports that it is seeking bids to raise prices.

If Bitcoin holds a profit after Coinbase’s offer, it will be a plus for crypto assets. “The long-term story is very positive, and in reality, digital assets are retained or continue to recover. [Coinbase offering] Being out and digested, it is a more positive reflection of accepting the long-term potential of digital assets. “

Lee said he didn’t know how Bitcoin and others would be traded after the Coinbase offer, but the rise in cryptocurrencies has increased interest in crypto exchange.

“It’s a kind of nutrition. They’re unlikely to sell crypto because they think Coinbase will help it. It’s a self-reinforcing dynamic,” Lee said.

Coinbase is valued more than the Nasdaq, which has a market capitalization of $ 25.9 billion, and perhaps the Intercontinental Exchange, which has a market capitalization of over $ 66.9 billion.

He said the public release of Coinbase is a plus for the currency market. “They make more money than any listed exchange in the world. They will make more money than the Nasdaq … Coinbase is not the most profitable crypto exchange in the world either. “Lee said.

From a chart point of view, Bitcoin seems to be set for more profit.

Katie Stockton, chief technical strategist at Fairlead Strategies, said he was looking for a Bitcoin breakout above the March high of $ 61,742. It broke that level early on Wednesday.

“If Bitcoin achieves this, the measured movement forecast will target $ 69,121 in the short term,” she writes. If it doesn’t maintain that level, a 50-day moving average could provide support, she said.

What Does Coinbase List Mean for Bitcoin and Other Cryptocurrency Prices What Does Coinbase List Mean for Bitcoin and Other Cryptocurrency Prices

Back to top button