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Bitcoin hits new records boosted by Coinbase's Wall Street debut

2021-04-13T14:47:21.659Z

The cryptocurrency exceeds $ 63,000 and accumulates a revaluation of more than 800% in the last year When it seems to have reached its limit, the bitcoin rush always seems capable of going a few degrees further. Or rather, a few dollars. The fever reached new records on Tuesday above $ 63,000, breaking all-time highs. Money flows into the cryptocurrency coinciding with the latest milestone to legitimize it: the IPO this Wednesday of Coinbase, the main platform for the sale of cryptocurrencies, wh



When it seems to have reached its limit, the bitcoin rush always seems capable of going a few degrees further.

Or rather, a few dollars.

The fever reached new records on Tuesday above $ 63,000, breaking all-time highs.

Money flows into the cryptocurrency coinciding with the latest milestone to legitimize it: the IPO this Wednesday of Coinbase, the main platform for the sale of cryptocurrencies, which will debut with multiples worthy of the fervor that the sector awakens: analysts calculate that it can reach the $ 100 billion valuation.

The company's turnover is very far from responding to that market price, but it is nourished by future prospects: in the first quarter of the year it entered 1.8 billion, compared to 190 a year ago, and earned more than 700.

  • New bitcoin fever brings cryptocurrency closer to all-time highs

That idea of ​​exponential growth is also the sentiment that encourages supporters of bitcoin to keep buying.

Among them there are those who speak of a super cycle to come thanks to the massive landing of retail investments.

The new communion between Wall Street and the world's first listed company of cryptocurrencies is an important step for advocates of this type of investment.

But the price of bitcoin has had Tesla founder Elon Musk, the second largest fortune on the planet, as the great cheerleader in recent months.

The electric car firm has acquired with its cash reserves 1.5 billion dollars in bitcoins, and allows to buy its vehicles using bitcoin as a means of payment.

Experts have been warning for years that the currency's extreme volatility incapacitates it as a means of payment, but Musk, prone to strong emotions, whether by launching one of his SpaceX rockets into orbit or investing heavily, shows no concern.

Tesla will not only accept bitcoin as a means of payment, but will not convert the currency to the dollar, thereby increasing its exposure to bitcoin, a bet that for now is proving tremendously profitable, but not without risk if the bubble burst. the one that many talk about.

The information that since last month indicates that large US investment banks such as Morgan Stanley and Goldman Sachs will offer their clients with greater risk tolerance access the possibility of buying bitcoins have also served as fuel for the current effervescence of its value.

The cryptocurrency exceeded $ 20,000 in December, it did the same with 30,000 and 40,000 in January, in February it surpassed the $ 50,000 barrier, and in March it broke the $ 60,000 barrier that it now consolidates.

That means that there are investors amassing large amounts of money.

Whoever bought a bitcoin five years ago and kept it, would have invested 384 euros and today would have 54,000.

Whoever did it two years ago, would have paid 4,500 euros and would have seen that amount multiply by twelve.

If only the last year is observed, the revaluation is still difficult to match: more than 800%.

Bitcoin's advance has been accompanied by a rally in other cryptocurrencies.

There are more than 9,200 registered cryptocurrencies, with a total capitalization of more than two trillion dollars, above the GDP of Spain, although bitcoin represents 54% of the value of all together, and the second, Ethereum, 11%.

Outside of the two big ones, there is a universe where a multitude of small cryptocurrencies coexist, among which investors seek quick returns and practically impossible to obtain in other assets, assuming a risk as high as the reward in a market that never sleeps: unlike Las Bolsas, is active 24 hours a day, seven days a week.

Central banks and other authorities have been preaching in the desert against cryptocurrencies for years.

While they warn of its dangers, its price continues to rise.

The last to do so was Isabel Schnabel, a member of the executive committee of the European Central Bank (ECB).

In a recent interview with the German weekly

Der Spiegel

, he called Bitcoin "a speculative asset with no recognizable fundamental value."

His words, however, like those of many who preceded him in criticism, are far from acting like an ibuprofen.

The fever keeps rising.

Source: elparis

All business articles on 2021-04-13

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