On April 13th, Bitcoin briefly rose above $63000 in intraday trading, reaching $62999.5 as of press release, up 4
On April 13th, Bitcoin briefly rose above $63000 in intraday trading, reaching $62999.5 as of press release, up 4.86%, with a market value of approximately $1.17 trillion. Meanwhile, Ethereum briefly rose above $2200, setting a new historical high.
Recently, the continuous rise of Bitcoin and Ethereum has driven the total value of global cryptocurrencies to exceed $2 trillion. On the news side, the imminent listing of Coinbase is seen as one of the main factors driving the recent rise of virtual currencies.
Coinbase, a cryptocurrency exchange giant, is about to go public
Coinbase, a US cryptocurrency trading platform, will be listed on the Nasdaq Stock Exchange on April 14th under the symbol "COIN", with a valuation of up to $100 billion. Once successfully listed, Coinbase will become the first stock of US cryptocurrency platforms.
It is reported that Coinbase is the world's largest digital currency exchange. As of December 31, 2020, Coinbase's cryptocurrency trading volume was $193 billion, an increase of 141.7% compared to 2019. The cumulative cryptocurrency trading volume on its platform exceeded $456 billion. Coinbase added 13 million new users and a total of 56 million registered users in the first quarter of 2021.
According to data, the compound annual growth rate of Coinbase platform assets is 258.57%, accounting for 11.1% of the total market share. In the first quarter of 2021, the total revenue was approximately 1.8 billion US dollars, an increase of over 844% year-on-year.
Big companies enter and Bitcoin prices hit new highs
Driven by market enthusiasm, cryptocurrency prices have skyrocketed this year, and Bitcoin prices have repeatedly hit historic highs.
At the beginning of January 2021, the price of Bitcoin was around $27700. Today, it briefly stood at $63000 per coin, with a cumulative increase of 116% and an annualized yield of 550%.
It is worth noting that on March 14th, after reaching a high of $61844, Bitcoin entered a period of adjustment, reaching a minimum of $50427.
Previously, giants such as Goldman Sachs, Morgan Stanley, New York Mellon Bank, PayPal, and VISA have provided cryptocurrency services to their clients, and companies such as Tesla MicroStrategy have also invested in cryptocurrency.
Meitu, listed on the Hong Kong Stock Exchange, purchased Bitcoin on March 7th, March 17th, and April 8th, respectively. As a result, its total investment in digital currencies has reached $100 million.
Four reasons contribute to the current Bitcoin bull market
Dongwu Securities stated that the current Bitcoin bull market, which began in Q4 2020, is mainly due to four reasons: halving the cycle, massive institutional allocation, increased lock-in by DeFi, and an increase in investors. The sharp increase in the number of "giant whale" addresses holding over 1000 Bitcoin in this round indicates that Bitcoin is flowing from small and medium-sized investors to whales. It should be noted that the foam of Bitcoin is more fierce than other assets. At the end of an oversold market, it will be cashed in with profit taking, trampled on the oversold end, and consolidated at a low level for a period of time, waiting for the next cycle to start. From a historical perspective, the price of Bitcoin has a strong correlation with its halving cycle every four years, with the first three halving cycles leading to bull markets ranging from 10 to 12 months.
Guohai Securities pointed out that as a rapidly growing asset, Bitcoin not only has the characteristics of commodities, similar to gold, but also carries the hope of emerging blockchain technologies, similar to stock market internet technology companies. Therefore, Bitcoin has the potential to become independent of commodities and stocks. However, as an emerging asset, Bitcoin also faces some risks: with the entry of large amounts of funds by institutions and the development of financial derivatives such as Bitcoin futures, there is still a risk of drastic fluctuations in Bitcoin prices; Countries are increasingly tightening their regulatory efforts, and governments are also increasing their supervision and crackdown on anti money laundering, tax inspections, and legal currency transactions.
Dong Dengxin, Director of the Institute of Finance and Securities at Wuhan University of Science and Technology, stated that the Bitcoin market has entered a stage of irrational and blind gambling. The higher the level, the more attention it may attract, and investors who are long may have a significant increase in confidence. Blindly doing more and failing will also result in serious losses.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
