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Bitcoin is drawing an end to 2020 with a bang. The giant cryptocurrency once again created history by soaring above US$ 28,500-mark on Wednesday, December 30. The virtual coin has gained nearly 47 per cent this month. Consequently, Bitcoin is now expected to touch its highest ever monthly gain since May 2019.
Bitcoin has been going viral among investors since it crossed US$ 20000-milestone earlier this month, guided by the mainstream recognition of cryptocurrencies. Top digital payment platform provider PayPal Holdings Inc. (PYPL: US or NASDAQ: PYPL) is also set to begin offering a cryptocurrency financing platform from 2021.
Analysts are seeing it as a hedge against traditional currencies and rising inflation. However, regulatory worries still loom large around the crypto investors.
The Securities and Exchange Commission alleged crypto token XRP's developer Ripple Labs Inc. and its management deceived investors. While Ripple has denied this accusation and set to take this matter to the court. Following this development, Coinbase announced the suspension of XRP token from crypto trading platform by mid-January 2021. The XRP token tumbled plunged by over 30 per cent on Tuesday.
Despite the constant scrutiny of the alternative digital currencies, the Covid-19 pandemic has induced a paradigm shift among users. Payments are moving from physical currency to digital and cryptocurrencies such as Bitcoin, Etherum, Ripple, etc. Worldwide central banks too are brainstorming on introducing universal digital currency.
@Kalkine Image 2020
Bitcoin-Driven Crypto Rally Impact
With all the frenzy around cryptocurrencies and bitcoin, US-based cryptocurrency exchange Coinbase has confidentially submitted an application for an initial public offering (IPO) to the US Securities and Exchange Commission. However, the company is yet to publicly reveal any details of the IPO.
Coinbase manages a retail division with its main exchange and provides a trading option on its Coinbase Pro product. It operates in more than 40 cryptocurrencies on its exchange in the U.S. The crypto exchange has over 35 million users across the world.
Once the IPO is approved by regulatory agencies, more cryptocurrencies are likely to list on its platform, which in turn will generate traction from the crypto investors.
As Bitcoin continues to smash new records, private and institutional investors are showing an interest in this. Crypto venture capital funds have grown at a rapid pace this year. In the third quarter of 2020 alone, a record US$897.7 million was invested in 212 blockchain startups, show data by digital asset space research firm The Block.
