Bitcoin is on the brink of forming a record high above $62,000 as the industry anticipates a volatile week with Coinbase being listed on Nasdaq on Wednesday.
Early estimates have suggested that Coinbase will be valued at around $130 billion when it goes live, which would add legitimacy to the industry as a whole.
Coinbase CEO Brian Armstrong announced the company’s decision to go public in late January, with Bitcoin’s price having rallied from $33,000 to $60,000 since the story broke.
Some may argue that the listing is already priced in, although analysts are predicting that the high valuation may be the catalyst for Bitcoin to print a new all-time high.
Bitcoin’s market cap is currently at more than $1.1 trillion, with the entire cryptocurrency ecosystem surpassing a market cap of $2 trillion last week.
It is a far cry from this time last year, when Bitcoin was reeling from the covid 19-induced sell-off that saw it slump to as low as $4,000 in March.
*COINBASE SAYS Q1 REVENUE TOPPED $1B, CRYPTO EXCHANGE PLATFORM HAS 56 MILLION VERIFIED USERS$COIN
— Investing.com (@Investingcom) April 6, 2021
If Bitcoin can surge to a new all-time high this week, analysts are predicting that it could reach a price target of $72,000 before the end of the month.
However, news events like this are often perceived as a “buy the rumour, sell the news” type of event by traders, which could heap pressure to the downside as it did in December 2017 when Bitcoin futures was listed on CME for the first time.
It is also worth considering that early investors in Coinbase’s direct listing may be inclined to sell at a high valuation to secure profits, which would also add more pressure to the downside.
Kraken, another cryptocurrency exchange, also has plans to go public next year following a surge in institutional investment from the likes of Tesla and MicroStrategy.
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