Bitcoin blasted above an all-time high new record of $63,000 on Tuesday. The digital token’s year-to-date gains more surged to 110%. Analysts believe the Coinbase direct listing on NASDAQ is one of the many reasons behind the surge.
Bitcoin has caught the attention of the world amid the Covid-19 pandemic. Several traders argued digital currency is perceived as a hedge against inflation. Additionally, large financial institutions and billionaires endorsed the cryptocurrency market—shifting into blockchain systems instead of the mainstream financial systems.
For instance, Elon Musk’s Tesla (NASDAQ: TSLA) invested a striking $1.5 billion in the digital currency—the largest investment from a non-crypto company. On the other hand, major financial institutions invested billions of dollars in both Bitcoin and Ether—the second-largest digital token.
The interest from financial institutions drove the cryptocurrency 800% higher over the last year. Meanwhile, the market value of all cryptocurrencies surpassed $2 trillion for the first time in history and if it continues with this pace, it will be the highest valued market globally.
Nonetheless, experienced investors argued the biggest reason behind Bitcoin’s surge above $63,000 is linked to Coinbase’s initial public offering on the Nasdaq which was set to be completed on Wednesday.
Matt Blom, head of sales at Nasdaq-listed digital asset company Diginex, said “$70,000 is the new target for the bulls.”
“Every month this year has so far registered a new all-time high.” He added:
Bitcoin surge followed Coinbase’s direct listing
The public listing of Coinbase will be the largest listing of a digital currencies company to this date. The company gained $1.8 billion in revenue in the first quarter of 2021. Additionally, the exchange said in March, the private market transactions were valued at around $68 billion
“Bitcoin’s rally today is likely driven by the commotion around the Coinbase listing”. said Ben Caselin, head of the strategy at cryptocurrency options exchange AAX.
“However, after consolidating around the $55,000 level for over a month, bitcoin’s upswing has also been a long time coming.”
Nonetheless, with a big interest in cryptocurrencies and especially Bitcoin—new traders should be alarmed by crypto scams. Bitcoin scams have resulted in billions of losses to traders in recent months.
U.S. watchdogs and European regulators alike have both warned of the illegal use of digital currencies. And of online scams are defrauding people of their money.