Over the weekend, the price of Bitcoin extended its rally to above $60,000 again. While not making a new all-time high, Bitcoin remains well bid ahead of the main event of the week ahead – the listing of Coinbase, one of the largest crypto exchanges.
The cryptocurrency market increased in size dramatically in recent years. The interest surrounding cryptocurrencies is on the rise, as suggested by the number of people trading on the various exchanges.
Part of the process of becoming a listed company, Coinbase made public its Q1 2021 numbers. What is interesting is that the number of active traders increased dramatically in the first months of the year, explaining the rise in Bitcoin and other cryptocurrencies.
While many traders focus on Bitcoin only, some other cryptocurrencies had an even better performance than Bitcoin. For example, Ethereum reached a new all-time high over the weekend, and the rally looks poised to continue.
Bitcoin’s detractors argue that the digital currency wastes a vast amount of energy, and thus it is an environmental disaster. Because of that, many traders flee Bitcoin to other alternatives, such as Ether, that do not have such a problem.
Yet, when it comes to institutional investors’ adoption, Bitcoin remains the preferred choice. Moving forward, the price of Bitcoin remains well bid, and so the rally is poised to continue.
Two days from now, Coinbase, one of the largest crypto exchanges in the world, goes public. Companies usually choose to go public during a rising market. Often companies postpone the listing process when markets are falling. But now, the main indices are close to all-time highs, and so the timing of going public boats well for Coinbase and cryptocurrency traders.
Judging by the interest surrounding cryptocurrencies, the chances are that Coinbase’s listing will be a bullish event for the main cryptocurrencies too. As such, Bitcoin and Ethereum remain well bid, with buyers likely to step in on every dip.