Coinbase (NASDAQ:COIN), the largest crypto exchange in the US, saw its shares rocket higher almost 17% yesterday, nearing 52-week highs. The rally is poised to continue today as in pre-market trading, shares are up by almost 7% – which means Coinbase may open at over $206 – a level that has not been seen in around 2 years.
The move arrived, minus any significant corporate news. At the same time, Bitcoin (BTC), the world’s most popular crypto, jumped to over $57,0000 – an amount BTC has not seen in more than two years.
Alex Adelman, CEO and founder of Bitcoin rewards app Lolli, declared Bitcoin’s rise the start of a new bull market for the asset:
“A key reason why this rally is so significant is that there was no major catalyst for it. Instead, Bitcoin’s price movements are being driven by sheer positive market sentiment and persistent Bitcoin ETF inflows, which reached new daily highs with the day’s rally. If Bitcoin breaks its all-time high, putting every Bitcoin holder in the green, Bitcoin and crypto will enter an unprecedented phase of adoption. With the world’s biggest financial firms now providing Bitcoin exposure to leading institutional clients with trillions in assets under management, the upcoming bull market will usher in a new era of legitimacy and mainstream acceptance of cryptocurrency. With the Bitcoin Halving just over a month away, which historically brings price increases, tremendous upside lies ahead for Bitcoin.”
While Adelman is not predicting a near-term price of Bitcoin, others are joining the sentiment that Bitcoin will soon hit new highs.
As for Coinbase, the only publicly traded crypto exchange, it appears to be benefiting as the place to purchase BTC in a regulated environment while overall markets are on the rise. Some analysts believe that Coinbase will soon shift into persistent profitability as it recently reported its first annual profit. Also, regulatory sentiment seems to be swinging towards crypto in general. The approval of Bitcoin ETFs was a clear loss for the Securities and Exchange Commission, which is decidedly anti-crypto.
While there are plenty of Bitcoin detractors (read the recent ECB take-down), traders understand that Bitcoin can be a volatility play, something speculators love. For the moment, it seems that as long as Bitcoin is rising, Coinbase will join the rally – along as other exogenous events do not get in the way.
