Bitcoin rose early Monday to a four-week high of $ 61,219.72. Analysts said the largest cryptocurrency may have received a boost from the buzz surrounding US exchange giant Coinbase’s upcoming live listing on Wednesday.
In cryptocurrency circles, the ‘Coinbase effect’ is when a digital token gets a price pump after it is listed on the exchange. But bitcoin could benefit from a different kind of “Coinbase effect” – if novice investors, spurred on by the general press coverage of the stock list, decide to put money into cryptocurrencies.
“The Coinbase hype in crypto, as far as its valuation and its dominant effect on other markets is concerned, means that the direct listing of Wednesday may become a major catalyst event,” the crypto-quantum firm QCP Capital in Singapore said on Monday in its Telegram channel written.
The crypto-currency analysis and data website IntoTheBlock wrote in a newsletter last week that “anticipation” of the Coinbase stock list “contributed to a broader risk sentiment across the crypto.” One week ago, the market value of all cryptocurrencies exceeded $ 2 billion for the first time.
QCP noted that bitcoin prices, despite doubling so far this year, have underperformed the Standard & Poor’s 500 index of major US equities over the past month, so a successful Coinbase listing could lead to a reversal.
Analysts of cryptocurrencies are also studying an important data statistic for blockchain that is considered bullish: bitcoin’s liquid offering is changing.
According to the analyst Willy Woo, become more bitcoins from liquid status to illiquids, meaning they are withdrawn and locked up in long-term holding patterns.
This means that there may be less supply for new bitcoin buyers, which could potentially offset what appears to have been a recent weakening in demand.
On the other hand, CoinDesk reported that net inflows to digital asset investment products fell by $ 23 million to $ 83 million last week.
At the same time, Bitcoin’s market dominance fell to around 55.6%, the lowest level since April 2019 – possibly an indication that more investors have shifted their focus to alternative cryptocurrencies (altcoins).
Ether hit a new high of $ 2,199.87 during trading hours in Asia on Monday, but exchanges, including Binance’s BNB and Uniswap’s UNI, stole the thunder with staggering double-digit percentages.
BNB has risen more than 15% over the past 24 hours, while UNI has risen more than 20%, according to Messari.
According to QCP, the march of the exchange certificates over the past month is a ‘spread’ of the listing of Coinbase, which warned that the uproar surrounding the event could lead to ‘too much short-term foam’ in the crypto market.
Binance, the world’s largest trading volume by trading volume, announced on Monday that it is now offering a zero-commission-signed stock trading service to its users, with prices settled in Binance’s own dollar-linked stalecoin, Binance USD (BUSD). word.
Other digital assets on the CoinDesk 20 are mixed. Notable winners from 20:00 UTC (16:00 ET):