Last Tuesday, Bitcoin (BTC) hit a new all-time high of $ 62,845. This all-time high has now also been broken. According to analysts, the announcement surrounding the upcoming stock exchange listing of the US crypto exchange Coinbase could have boosted the most popular cryptocurrency.
The impact of Coinbase
The “Coinbase Effect” means that a coin or token experiences a significant increase in its price after it is listed on Coinbase. So Bitcoin could also benefit from some kind of “Coinbase effect.” The listing is getting a lot of press attention, and it is predicted that this attention will only increase until the listing is made public and official. Investors who do not yet have a cryptocurrency in their possession should do so quickly.
“The Coinbase hype within the crypto world, in terms of valuation and impact on other markets, means that this incident could potentially start a chain reaction leading to a surge in all cryptocurrencies,” Singapore-based crypto-quant company QCP Capital wrote on its own Telegram channel last Monday.
In a newsletter last week, IntoTheBlock, a cryptocurrency research and data blog, stated that the expectation of Coinbase’s listing has led to a greater propensity to make risky trades in the crypto world. For the first time in history, the total market cap of all cryptocurrencies exceeded $ 2 trillion a week ago. After doubling this year, Bitcoin’s value has underperformed against the S&P 500 Index of major US stocks for the past month, according to QCP. Still, Coinbase’s listing could be a reversal. In any case, that is what many crypto investors are more than happy to hope for. Spain Cryptocurrency Predictions is popular.
More Bitcoins will become illiquid, according to analyst Willy Woo, meaning they will be pulled from the markets and kept for the long term by the owner of these crypto coins. As a result, there will be less liquidity for potential Bitcoin buyers, forcing them to pay a high price for a Bitcoin. That also drives the value of Bitcoin up sharply.
On the other hand, net cash flow in the crypto world fell by $ 23 million last week to a respective figure of $ 83 million.
At around the same time, Bitcoin’s market dominance fell to around 55.6 percent, which is its lowest level since April 2019. This may indicate that more buyers are turning their attention to alternative crypto coins (altcoins). Many people speculated that this was the start of a new alt-season.
Ethereum and Other Cryptocurrencies
On Wednesday morning, Ethereum hit a new all-time high of $ 2,300, but exchange tokens like Binance Coin (BNB) and Pancakeswap (CAKE) stole the show over the past few days with percentage gains hitting double digits.
According to Messari, BNB is up more than 41% in the past week, while UNI is up more than 35%.
According to QCP, the recent surge in these tokens is a “spillover” of Coinbase’s listing. They also warned that the hype surrounding this whole thing could lead to “too many short-term problems” in the crypto industry.
Binance, which is the world’s largest crypto exchange by trading volume, revealed on Monday that it will now offer its customers a tokenized stock service that does not require commission. The rates will be settled in Binance’s own stablecoin, called Binance USD (BUSD). France Crypto predictions is popular.
Initial public offering of Coinbase
Yesterday, the largest cryptocurrency trading platform in the United States went public. The company, which was founded in 2012, is the first crypto exchange to be listed on the stock exchange. The SEC (Securities and Exchanges Commission) approved the IPO at the beginning of April.
Normally, investment banks would help sell shares, but that doesn’t happen in this case. Coinbase will receive a direct stock exchange listing. With this listing, cryptocurrency will become even more part of our financial system.