Bitcoin Aims for $62k and Ether Breaks Out into a New ATH as the Market Readies for Coinbase Listing
Funding rates are soaring as market sentiments get bullish ahead of Coinbase’s historic listing on Wednesday next week. Exchange tokens like FTT and BNB are enjoying this by hitting new highs every other day.
The market is seeing a lot of green this weekend after having a rough start to the week. Bitcoin price surged past $61,200, nearing its all-time high of about $61,700 as the crypto market gained momentum.
Ethereum actually broke out into a new all-time high at $2,195 on Coinbase. ETH -3.40% Ethereum / USD ETHUSD $ 1,916.22
-$65.15-3.40% Volume 21.46 b Change -$65.15 Open $1,916.22 Circulating 121.97 m Market Cap 233.73 b 7 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 7 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 7 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022
Naturally, the greens have the leveraged traders yet again going all-in that has the funding rates soaring. As of writing, the highest Bitcoin funding rate is 0.2128% on OKEx, while for Ether, it is 0.2235% on Binance.
“Bitcoin shorts just got steamrolled by a wave of leveraged longs. Binance quarterly basis just went from 34% to over 50% annualized, in three hours. Ethereum at all-time highs” noted trader and economist Alex Kruger.
$BTC consolidating hard with minimal funding rates.
Coinbase listing next week.
Took profit on all short term alt positions and rotated back to BTC. Not gonna sell long term alts, just compensating those with a $BTC long.
UP ONLY pic.twitter.com/M8TEvLIAAG
— Squeeze (@cryptoSqueeze) April 10, 2021
The biggest event in the crypto market right now is the Coinbase listing next week.
The largest cryptocurrency exchange in the US, Coinbase, is all set to make its trading debut on Nasdaq under the ticker “COIN” on Wednesday.
Just this week, the exchange announced its Q1 results that revealed a total revenue of approximately $1.8 billion, about $800 million in net income, $335 billion trading volume, and 56 million verified users.
“In a traditional stock portfolio, it gives exposure to an exchange platform that generates trading fees on crypto,” Greg Foss, Bitcoin investor and chief financial officer for Validus Power Corp, told Bloomberg.
“Those fees increase with volumes and volumes typically increase with prices, so there is a beta trade there.”
Coinbase is taking the direct listing route in which it won’t raise any new capital. It will allow shareholders to trade their shares without a lock-up period, which is typical in an initial public offering (IPO).
In the final week of trading on Nasdaq’s private market, Coinbase was valued at about $90 billion.
“For a crypto investor that also buys stocks, it has the ability to diversify risks as there is a very profitable exchange platform that trades on another venue (stock exchange) whose flows of buyers and sellers can be less correlated than many crypto prices.”
Regardless of which crypto assets are performing the best, Coinbase will win in all the situations as to whether the market is going up or down, the trading volume soars the same.
The market expects a lot of volatility next week as COIN begins trading and starts as a beta play on the crypto volatility and price action.
Ahead of this, exchange tokens are also enjoying repricing, with FTX’s FTT token up 760% YTD. Leading crypto exchange Binance’s native token BNB is also hitting new highs every day, now targeting $500. Growing usage of Binance Smart Chain (BSC), due to high fees on the Ethereum blockchain pricing out small users, is also pushing it upwards. BNB -0.95% BNB / USD BNBUSD $ 319.74
-$3.04-0.95% Volume 1.18 b Change -$3.04 Open $319.74 Circulating 161.34 m Market Cap 51.59 b 7 mon SEC Rejects Another Spot Bitcoin ETF, Binance Announces New System to Remove BNB from Circulation 7 mon BitMEX Launches BMEX Token for Active Users, US Not Eligible for Airdrop 7 mon Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions
“The Coinbase IPO and BSC narratives perfectly coalesced for CZ to once again flex the social and financial capital of the behemoth that is Binance, and by extension, himself,” noted trader Hsaka.