As traders eye Coinbase listing, Bitcoin jumps to all-time high.
As the mood in cryptocurrencies turned optimistic ahead of Coinbase Global Inc.’s listing this week, Bitcoin jumped to an all-time high.Exceeding the previous apex in March, the token rose as much as 5.5% to $63,246. Cryptocurrency-exposed stocks such as Marathon Digital Holdings Inc. and Riot Blockchain Inc. also progressed.Even though the doubters doubt the durability of the boom, the Crypto bulls are out in force because of the growing list of companies embracing Bitcoin. In one of the most potent indications of Wall Street’s rising acceptance of cryptocurrencies, Coinbase will list on the Nasdaq on April 14 at a valuation of about $100 billion.
Ipek Ozkardeskaya, a Senior Analyst at Swissquote, wrote in a note, Coinbase’s debut “will mark the first official juncture between the traditional financial avenue and the alternative crypto path”. He added, “As such, a successful addition to Nasdaq should act as endorsement of cryptocurrencies by traditional investors.”
Morgan Stanley and Goldman Sachs Group Inc. have announced plans to offer access of crypto investments to their clients. Earlier this year, Tesla Inc. revealed an investment of $1.5 billion in Bitcoin and also started accepting it as payment for electric cars.
Sceptics still contend that digital coins have been overblown by stimulus that’s also sent stocks to records. Regulators around the world are speeding up oversight and casting doubt on its practicality as a currency.
In an interview with Der Spiegel this month, Isabel Schnabel, member of the Executive Board of the European Central Bank, called Bitcoin “a speculative asset without any recognizable fundamental value”.
The public debut of Coinbase this week is also enhancing the digital coins of other cryptocurrency exchanges, like Binance Coin, which has jumped to become the third-most valuable cryptocurrency after Ether and Bitcoin.
According to Mike McGlone, Bloomberg Intelligence commodities strategist, “The lowest 30-day volatility since October tells us Bitcoin is ripe to exit its cage and continue in a bull-market on its way to the next $10,000 move”. He added, “Similar to Tesla’s equity-wealth allocation to Bitcoin, the Coinbase IPO may add to the growing list of 2021 crypto-validation milestones.”