The Coinbase logo is displayed on a smartphone.
Chris Delmas | AFP via Getty Images
LONDON – Bitcoin and other cryptocurrencies hit new heights on Wednesday. Traders were waiting for Coinbase’s much-anticipated debut.
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.
As of 7 a.m. ET, Bitcoin traded 6%, up 6% to $ 64,457 while Ether rose 3.6% to $ 2,368. Other Bitcoin alternatives also rebounded, with XRP rising 12% to $ 1.85 and Cardano hitting a new price record of $ 1.56.
Coinbase, the largest crypto exchange in the United States, will go public on Wednesday via a blockbuster direct listing that could value the company at up to $ 100 billion. The Nasdaq gave Coinbase a reference price of $ 250 per share, which, if fully diluted, would value the company at around $ 65.3 billion.
Coinbase is the largest cryptocurrency company to date 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 – which has more than doubled since the beginning of the year – 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 bring their offerings to wealthy customers exposed 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.