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Coinbase’s listing on Nasdaq has created quite a stir in the cryptocurrency industry and has served to push many cryptocurrencies to new all-time highs (ATHs).
Speaking on CNBC’s Squawk Box today, Galaxy Digital CEO Mike Novogratz testified to this and called Coinbase’s listing a “Netscape moment for the cryptocurrency economy.” Novogratz is referring to the company behind one of the world’s earliest established Internet browsers, the Netscape Navigator, whose stock value rose to $75 from $28 on the first day of being publicly listed.
Novogratz predicts that institutions are going to come “flooding” into the cryptocurrency sector, with Coinbase providing indirect exposure to Bitcoin and other cryptocurrencies. The Galaxy Digital CEO added:
“$COIN is the first big marquee equity that mutual funds are going to say, hey I can make my statement in crypto this way.”
Coinbase is now trading under the ticker symbol $COIN on Nasdaq and is the first major crypto firm to go public. In a filing with the Securities and Exchange Commission, Coinbase wrote:
“Today, the way that we invest, spend, save, and generally manage our money remains cumbersome, inaccessible, expensive, and regionally isolated […] We are building the cryptoeconomy – a more fair, accessible, efficient, and transparent financial system for the internet age.”
Coinbase was created by co-founders Brian Armstrong and Fred Ehrsam at a time when Bitcoin was only worth $6 and “known by a few nerds on the internet,” asserted Ehrsam. Armstrong and Ehrsam met on Reddit and proceeded to build their digital vision: to make crypto easy to use. The company has now grown to valuation of $85 billion. On its trading debut on Nasdaq, $COIN traded as high as $429.54, despite falling back to around $310. Currently, it is trading at around $345, which is still a significant increase from Nasdaq’s suggested reference price of $250.
Coinbase’s listing has served to promote cryptocurrency and put digital assets in the limelight. Consequently, this has led the crypto sector into a bullish week, with many Bitcoin and many altcoins achieving new all-time highs. Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), Uniswap (UNI), and VeChain were all pushed to new all-time highs, while other altcoins underwent significant surges.
This momentum is expected to continue, as many believe that the cryptocurrency industry is still nascent. However, Coinbase’s listing on Nasdaq is indicative of the growth the cryptocurrency industry has undergone and its entry into mainstream finance.
BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Bitcoin trading on Bitstamp since Feb. 15.
Source: TradingView
Bitcoin trading volume on major exchanges.
Source: CoinDesk
Bitcoin is in “uncharted territory,” said Hunain Naseer, senior editor at OKEx Insights, after its price surged to a new all-time high above $52,000, only a day after it passed the key psychological threshold of $50,000.
Price volatility remains high when compared with major macro assets including the Standard & Poor’s 500 Index of stocks, gold and bonds.
Source: CoinDesk Research, St. Louis Fed, Yahoo Finance
“We can expect some consolidation between $50,000 and $52,000, with a possible retest of the $49,000 support,” Naseer added.
Read More:Bitcoin Poised for Short-Term Gains Past $51K as MicroStrategy Upsizes Debt Deal
One bullish signal: a large amount of stablecoin reserves on cryptocurrency exchanges, according to data from South Korea-based crypto data firm CryptoQuant. That could show traders moving stablecoins into place so they can buy quickly if the price is right.
“So many stablecoins in exchanges” compared with bitcoin held on exchanges, Ki Young Ju, CEO of CryptoQuant, told CoinDesk, pointing out that selling pressure is relatively low.
The ratio of bitcoin reserved on all exchanges and all stablecoin held on all exchanges has declined since the beginning of the year.
Source: CryptoQuant
In the derivatives market, bitcoin futures on the Chicago-based CME logged a record high single-day trading volume and total interest on Tuesday, according to data from blockchain analytics site Skew. The elevated activity could be an indicator of rising bitcoin demand from institutional investors.
Source: Skew
Institutional interest in bitcoin is also reflected in another market indicator called the Coinbase premium, a measurement of the price difference between Coinbase Pro’s BTC/USD pair and Binance’s BTC/USDT pair, said CryptoQuant’s Ki. The number flipped positive on Wednesday.
“Coinbase [U.S. dollar] whales are like gatekeepers” of the bull market, Ki said of investors with large holdings.
Ether consolidates, institutional interest in futures rises
Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Wednesday, trading around $1,828.15 and climbing 4.45% in 24 hours as of 21:00 UTC (4:00 p.m. ET).
On the technical side, ether is in a consolidation phase after losing short-term momentum, according to Katie Stockton, a technical analyst for Fairlead Strategies.
“I view the consolidation as healthy within the context of its steep uptrend,” Stockton said. “The 20-day moving average at $1,556 is a gauge of initial support.”
Read more: Coinbase, Readying for Public Listing, Gets $77B Valuation From Nasdaq Private Market
Ether’s correlation with bitcoin has been flat this month at around 0.68, after it moved down to as low as 0.55 in January.
“As long as bitcoin stays above $49,000 we can expect a rally in the altcoins, including ether,” OKEx Insights’ Naseer said. “But that will only happen when bitcoin’s volatility drops a little.”
Source: CoinDesk
At the same time, institutional interest in ether futures has grown significantly, according to data provided by blockchain analytics firm Glassnode.
Source: Glassnode
“One week after ether futures launched on CME, daily trading volume reached a total of $75.8 million yesterday – almost doubling Friday’s volume of $40 million,” Glassnode wrote in a tweet Wednesday. “Meanwhile, open interest has increased to $62 million.”
The launch of the CME’s new ether futures contract last week might be one reason why ether’s price has underperformed, said trader and analyst Alex Kruger.
Read more: Ethereum’s Favorite Lossless Lottery Will Airdrop Its POOL Token Today
“Ether is a high beta asset to bitcoin, and it is supposed to move in line,” Kruger said. “Sometimes its own set of technical and or fundamental drivers kick in and make price trajectories or performance differences.”
Other markets
Digital assets on the CoinDesk 20 are mostly in green Wednesday. Notable winners as of 21:00 UTC (4:00 p.m. ET):
Notable losers:
Commodities:
Oil was up 0.37%. Price per barrel of West Texas Intermediate crude: $61.22.
Gold was in the red 1.09% and at $1775.03 as of press time.
Treasurys:
The 10-year U.S. Treasury bond yield fell Wednesday dipping to 1.286%.
The CoinDesk 20: The Assets That Matter Most to the Market
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
Bitcoin just crossed $50,000 for the first time. Its market cap is just short of $1 trillion.
Along with Ethereum, Bitcoin has outperformed every traditional asset year-to-date.
Bitcoin is now the sixth biggest asset in the world by market cap.
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The Bitcoin rally continues. It’s just crossed $50,000 for the first time.
Bitcoin Breaks $50,000
Bitcoin is trading above $50,000.
The original cryptocurrency broke $25,000 for the first time on December 26 2020, meaning it’s doubled in price in less than two months.
Recent weeks have been particularly bullish for the digital asset.
On Feb. 8, Bitcoin sliced through its previous high of $42,000 after Tesla revealed it had made a $1.5 billion investment in the asset. The price jumped over 9% in the hour following the news. Many crypto enthusiasts then identified$50,000 as a key psychological benchmark.
The $50k resistance level for #Bitcoin appears to be psychological rather than technical. Likely more people will FOMO in, rather than out. I don’t think it lasts long. $42k was the real resistance and that’s long gone.
— Vinny Lingham (@VinnyLingham) February 9, 2021
Some have said that the leading crypto could be headed for six digits in the future. JP Morgan’s analysts recently targeted a price of $146,000 for the asset, while Citibank projected $300,000. The investment bank pointed to the cryptocurrency’s “digital gold” strengthening narrative alongside the U.S. dollar’s devaluation.
The market is filled with optimism at the moment. Nonetheless, risk management is key. Cryptocurrencies are known for their price volatility. In the 2017 market cycle, Bitcoin experienced several dips before topping out at around $19,600. It then retraced 65% in less than seven weeks.
Along with Ethereum, the leading crypto has historically outperformed traditional assets like the NASDAQ index and gold by a significant margin. Ethereum leads year-to-date gains at 151%, with Bitcoin following at 67%. Meanwhile, the NASDAQ index is up only 7.44%, and gold logs negative returns of 6.39%.
With Bitcoin at $50,000, the market capitalization crossed $930 billion. It’s now the sixth biggest asset in the world, according to AssetDash, trailing a handful of giants like Apple and Amazon. At Bitcoin’s current supply, the market cap would hit $1 trillion when the asset breaches $53,700.
Disclosure: This author held Bitcoin at the time of press.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Bitcoin has today set a new all-time high with the leading cryptocurrency trading as high as $19,800 in the past few hours. This milestone broke the previous all-time high of $19,666 recorded on the Bitstamp exchange on Dec 16 2017. Huge Milestone for Bitcoin Creating a new all-time high represents a major milestone for Bitcoin
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Bitcoin has today set a new all-time high with the leading cryptocurrency trading as high as $19,800 in the past few hours. This milestone broke the previous all-time high of $19,666 recorded on the Bitstamp exchange on Dec 16 2017. Huge Milestone for Bitcoin Creating a new all-time high represents a major milestone for Bitcoin