The cryptocurrency exchange Coinbase is perhaps the second largest in the world and probably the largest in USA. This week they made history by becoming the first ever crypto exchange to be listed on the stock exchange as a publicly listed company. This is the event that will certainly mark the time in crypto history when it went mainstream. The first wave of the cryptocurrency era is over and as Coinbase Chief Economist Phillip Gradwell Tweeted
“For me it marks the end of the beginning for crypto.”
When a child reaches teenage years, at 13, they traditionally undergo an initiation ceremony of some sort, like a Barmitzvah, signaling their entry into the early stages of adulthood. Well Bitcoin and thus cryptocurrency as a whole is in its thirteenth year and this public listing on the Nasdaq stock exchange of Coinbase is like that watershed moment.
Using the trading ticker COIN, the world’s largest crypto exchange began by trading at $328 per share, valuing the company at a massive $85.8 billion. This is huge for the crypto industry as a whole because it’s going to be just the first of the next wave of mainstream adoption of cryptocurrency. More crypto companies will enter the old school mainstream stock market upon seeing this breakthrough because anyone in finance or economics knows that cryptocurrency is where the profits lie.
Cryptocurrency is obviously the next level of not only finance but practically the internet as we know it today. The combination of these two sectors being so positively upgraded via blockchain technology means that more and more legacy companies will be eager to jump on board and invest in it. Many are now buying huge amounts of bitcoin to add to their portfolios. The cryptocurrency wave is now undeniable, except to gold bugs like Peter Schiff of course, since he has to stay loyal to his product – gold – even though we can see that bitcoin is eating away at gold’s investment stream. Millennials will rather buy bitcoin that gold today.
As the biggest institutional finance companies invest in cryptocurrency, and even governments buy bitcoin for their treasury or retirement funds, it looks like crypto is here to stay. Some national governments may try to ban it but the majority will simply regulate it and try to tax those who invest in crypto. These sort of events were not around during the previous bull market cycle of bitcoin, so this time it is indeed different. There’s no denying it. And this means that this time bitcoin’s price trajectory may act quite differently compared to the past three major bull market cycles.
The liquidity crunch is unprecedented. The supply shock or drying up of bitcoin available for sale on exchanges, will naturally push price to unknown levels. The glass ceiling will certainly be shattered in this bull run. Barring some black swan event, I foresee bitcoin climbing to unexpected heights in value, if this news and activity is anything to go by. The fundamentals have never been better for cryptocurrency as a whole.
Add to that the improvement in sentiment and confidence in crypto and you have a winning formula that will drive technical analysis forecasts. TA may still apply for short term trading but long term bullish sentiment will outweigh TA in the long term, in my opinion. Therefore in any day trading we can err on the side of bullishness this year.
Stats suggest that there is still a massive flow of fiat into cryptocurrency, via the likes of Coinbase and other leading exchanges – to the tune of $1 billion a day. As long as this trend continues, older legacy investments like metals, art collectibles and property, will lose market share while crypto gains. With the overall crypto market cap at over $2 trillion now, only half of which is bitcoin, we are entering newer heights in macrofinance globally.
I wonder who will be the next crypto company to go mainstream and publicly list shares on the stock exchange? Let us know if you have any info or insights by leaving a comment.
Posted Using LeoFinance Beta