Coinbase, one of the largest cryptocurrency exchanges in the USA, will be listed on Nasdaq on April 14.
The reaction of both crypto and trading financial markets to the listing has been generally positive. Hours before the listing, analysts shared their views on how this could affect Bitcoin and altcoin prices.
Will the crypto market peak?
Coinbase will not hold an initial public offering (IPO) before it is listed. The exchange will instead be listed directly on the Nasdaq and will not need to work with investment banks, which is often costly for businesses.
Although investment banks are not included in Coinbase’s listing process, the listing of the exchange is expected with great enthusiasm in the industry.
Speaking on CNBC’s Squawk Box on April 12, Jim Cramer stated:
“You should buy Coinbase when it’s listed. Other companies will follow. MicroStrategy has always been a leader in this, and others will follow.”
— Squawk Box (@SquawkCNBC) April 12, 2021
There are some reasons why investors in traditional financial markets are eagerly awaiting the COIN.
The two biggest reasons are the ability to invest in the crypto market without owning crypto money and Coinbase’s attractive business model.
Jarvis Labs Co-Founder Ben Lilly explained:
“Coinbase is a turning point in terms of legitimizing the value you see in the crypto market, especially the decentralized exchanges that have a small portion of the running and operating expenses of Coinbase or ICE. Coinbase will show how profitable it can be to invest in this industry. “
A finance researcher of venture capital firm John Street Capital, Coinbase’s annual revenue of $ 1.8 billion explained that it can be an extremely profitable investment.
In addition, Coinbase’s user base is much larger than Cash App and Venmo. In fact, the exchange’s user base represents the largest user base of all financial institutions in the US except JPMorgan Chase.
Although some investors are worried that the crypto market will peak after Coinbase is listed, market sentiment regarding the listing appears to be extremely positive.
Bloomberg Intelligence Senior Commodity Strategist Mike McGlone, with the listing of Coinbase, Bitcoin’s Thinks he can reach 70 thousand dollars:
“Listing Coinbase could move Bitcoin to $ 70k. The lowest 30-day volatility since October shows that Bitcoin is preparing to escape its cage, and the bull market will make its next $ 10k rise.”