Bitcoin and Ether hit new record highs before the pioneering Coinbase listing
The Coinbase logo is displayed on a smartphone.
Chris Delmas | AFP via Getty Images
LONDON – Bitcoin and other cryptocurrencies hit new heights on Wednesday. The most popular coin broke over $ 64,000 ahead of Coinbase’s much-anticipated public debut before weakening in the afternoon.
The world’s most valuable digital coin hit an all-time high of $ 64,841 on Wednesday morning, according to Coin Metrics. The price of ether, the second largest sign by market value, briefly hit the $ 2,400 level for the first time.
Bitcoin reduced profits later in the day when Coinbase’s initial pop wore off and the cryptocurrency traded near $ 62,000. Ether fell back to around $ 2,330.
Coinbase, the largest crypto exchange in the United States, began trading at $ 381 per share just before 1:30 p.m. ET, which translates to a market cap of around $ 100 billion. However, in the afternoon it fell to $ 328 per share. The Nasdaq gave Coinbase a reference price of $ 250 per share.
Coinbase is the largest cryptocurrency company to go public. According to CoinMarketCap, it is the second largest exchange for digital assets in the world in terms of trading volume. With its easy-to-use app, crypto was brought into the mainstream. The company had estimated sales of $ 1.8 billion in the first quarter of 2021 when the value of Bitcoin and other tokens skyrocketed.
The company’s public listing has sparked renewed excitement in the crypto market, and some investors have called this a “turning point” for the industry. According to analysts, the Coinbase debut shows that crypto has matured significantly in the past two to three years – but it is still in its infancy and continues to be marred by price volatility and regulatory uncertainties.
Bitcoin’s comeback – the price of which more than doubled in 2021 – was marked by big bets from mainstream investors. Tesla invested $ 1.5 billion in the token earlier this year, and Wall Street giants like Goldman Sachs and Morgan Stanley wanted to offer their wealthy customers some exposure to crypto.
Bitcoin bulls see it as a kind of “digital gold” that does not correlate with other assets and can serve as a hedge against rising inflation. However, skeptics say the digital asset is still very speculative and consider it to be one of the largest market bubbles in history.