The reason Bitcoin and many cryptocurrencies peaked in the past 2 days

The important cryptocurrencies with large total market value all broke their peaks at the beginning of the week. This movement can come from the positive news on the trading floor.

On the afternoon of April 13, the price of Bitcoin broke its peak from March. According to data on Coinmarketcap, the price per Bitcoin surpassed $ 63,500, surpassing the highest level (ATH) of 61,300 in March.

Bitcoin is not the only cryptocurrency to hit the top. Ethereum is still setting new highs above $ 2,200. A day ago, Binance Coin (BNB) of Binance exchange also reached 637 USD, the highest price ever. Meanwhile, the XRP coin also reached a value of $ 1.66, the highest since January 2018.

cryptocurrencies

Waiting for the Coinbase IPO

In addition to Bitcoin, all three of the aforementioned coins are among the top 5 digital currencies by market capitalization. Large-cap cryptocurrencies rarely experience sharp fluctuations in price.

According to crypto experts, this phenomenon could be the result of positive news from a variety of exchanges, including Coinbase’s upcoming IPO.

“The launch of Coinbase may be the first time a familiar form of financial investment has been combined with a cryptocurrency. Their successful listing on Nasdaq will show the support of traditional investors for cryptocurrencies, ”said Ipek Ozkardeskaya, an investor at Swissquote.

Coinbase is the major crypto exchange in the US. Therefore, this company’s IPO also attracted the attention of investors.

The Securities and Exchange Commission of America (SEC) approved the IPO of Coinbase and set the date of IPO April 14. Coinbase rival Kraken, the fourth largest exchange in the US, may also go public in 2022, according to CNBC.

“An IPO is going to be a major milestone. Such moves can help investors feel more secure in crypto”, Mr. Nick Jones, Founder and CEO of Zumo E-Wallet, said.

According to CNBC, Coinbase’s IPO valuation is $ 100 billion. If the IPO is successful, the company will be on the list of 85 most valuable companies in America. This expectation caused many cryptocurrencies, including Bitcoin, to rise in price.

“This is a major step forward for the crypto industry. It helps increase trust, transparency. There was skepticism in the past, and I think having a big IPO will help many people realize that cryptocurrency is not just an asset, but a business that needs to be.” said Marcus Swanepoel, founder of crypto trading company Luno.

However, with the business model still quite unfamiliar to traditional investors, each expert evaluates Coinbase from a different perspective.

The profitability of this exchange is almost tied to the prices of Bitcoin and Ethereum, the two largest cryptocurrencies by market cap. In the first quarter of 2021, Coinbase’s revenue was $ 1.8 billion, net profit reached $ 800 million.

Bitcoin and Ethereum have increased in price 8 and 13 times in the past year, respectively. During the same period, Coinbase grew 9 times.

That growth made Coinbase a big question mark on stock exchanges, where financial investors still stick to indicators like P / S (price / revenue ratio) or P / E (return per share).

“It is always difficult to value a startup, but I think the problem is even more difficult for a company like Coinbase,” said Natalie Hwang, founder of investment firm Apeira Capital.

However, according to analyst Jason Deane at Quantum Economics, Bitcoin’s rise isn’t just due to Coinbase’s IPO. Deane believes the cryptocurrency has been challenging resistance around $ 60,000 in the past few weeks, and Bitcoin’s price rise is inevitable.

“The peak price is of course, when looking at the market movement, investor’s emotions and the supporting factors”, commented analyst Jason Deane.

Many other cryptocurrencies are also accelerating

In addition to Bitcoin, cryptocurrencies with a large capitalization, often referred to as the “top coin,” are also rapidly increasing in value.

cryptocurrencies

Ethereum’s price surpassed $ 2,300, up nearly 3 times since the beginning of the year. In addition to Coinbase’s IPO, another major Ethereum platform event took place on April 14, the hard fork named Berlin.

This hark fork will bring many major changes to the Ethereum network, including new forms of transactions and reduced fees. Both events happened during the week that caused the price of Ethereum to soar.

Meanwhile, Binance Coin (BNB) also gained thanks to the stock trading feature on the Binance exchange. On April 13, Tesla became the first stock that can be traded on the Binance exchange, through its token BUSD.

Besides, the token “burning” taking place in the next few days will also cause the number of BNB to decrease, partly causing the price of this cryptocurrency to increase sharply.

The positive signals from cryptocurrencies are causing the majority of the crypto market to enter the week of strong bulls. However, investors will still wait for Coinbase’s IPO to look for the next signal.

“This is a very important moment for the entire crypto industry. Coinbase is acting as a visual representation of the entire ecosystem, and its IPO will be watched closely to see if Wall Street investors really care”, Wedbush Securities analyst Daniel Ives said.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments