By - Anuj
Source: Andreanicolini, Shutterstock
Bitcoin crossed the US$ 63,000-mark for the first time on Tuesday morning, April 13, a day before US crypto exchange Coinbase Global Inc is set to go public on the NASDAQ via a direct listing. The crypto exchange stock will trade under the ticker of ‘COIN’.
The cryptocurrency market started an early celebration of the first-ever crypto listing on the US exchange on Tuesday. Apart from Bitcoin, popular virtual coins Ethereum, Litecoin, Dogecoin and XRP have also been trading in the green for the last 24 hours.
Bitcoin’s token jumped nearly five per cent over the past day to set the new record. It has returned 115.36 per cent this year and holds a market capitalization of US$ 1.18 trillion (8:12AM EST).
Let us delve into a consolidated list of positive catalysts behind the bitcoin surge.
With the backdrop of Wall Street’s acceptance of evolving cryptocurrency, the latest bitcoin price rally is likely to be more sustainable than its previous boom in 2017. A crypto network getting the US Securities and Exchange Commission’s (SEC) nod is a big achievement for the overall industry.
The list of institutional investors seeking to invest in Bitcoin is also growing, from JP Morgan to Morgan Stanley, and these giant asset management firms expect that it could be a better option to hedge risks.
Mainstream companies' acceptance of bitcoin has also set a tone of confidence for the digital currency. Earlier this year, Tesla Inc (NASDAQ:TSLA, TSLA:US) publicly announced its US$ 1.5 billion investment in the world’s largest crypto coin. It also started selling its electric cars in exchange for bitcoins recently.
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Cryptocurrency exchanges and digital payment platforms have also started to see a boost over the frenzied buying across the globe. Malta-based Binance, which is one of the largest crypto exchanges in the world, recorded a surge of 23 per cent on Monday on the back of Coinbase’s public debut announcement.
US-based digital payment firms, such as Square Inc and PayPal Inc, have purchased bitcoins worth millions of dollars, while fintech companies have been allowing their users to exchange fiat money for crypto coins.
Now, investors will be keeping an eye on Coinbase’s stock performance once it starts trading on Wednesday, as that could have a strong impact on Bitcoin’s ongoing bull-run.