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Bitcoin reaches record high ahead of ‘truly momentous day’

  • April 15 2021
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Bitcoin reaches record high ahead of ‘truly momentous day’

By Cameron Micallef
April 15 2021

The price of bitcoin has surged to a new high following the direct listing of a crypto exchange platform which experts describe as a ‘truly momentous day in the cryptoverse’.  

Bitcoin reaches record high

Bitcoin reaches record high ahead of ‘truly momentous day’

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  • April 15 2021
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The price of bitcoin has surged to a new high following the direct listing of a crypto exchange platform which experts describe as a ‘truly momentous day in the cryptoverse’.  

Bitcoin reaches record high

The price of bitcoin climbed to US$64,490 ($84,000) after it was announced that Coinbase would direct list on the US stock exchange on Wednesday US time. 

Coinbase is the largest US-based cryptocurrency exchange, used by 56 million people to buy, sell and trade cryptocurrencies.

The platform generates its revenue from transaction fees based on the price and quantity of the crypto that is purchased, sold or withdrawn, as well as its own financial services and payment systems. 

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Coinbase began trading at $381 a share after a $250 reference price was established Tuesday afternoon, US time. 

Coinbase shares closed at US$328.28, down 14 per cent from the US$381 opening price on Nasdaq after earlier climbing as high as US$429.54. At the closing price, the company’s valuation on a fully diluted basis is about US$86 billion.

Following the direct listing, Apollo Capital’s managing director and co-founder, Tim Johnston, said it was another sign of mainstream adoption of crypto assets in general, with Coinbase trades more than just bitcoin.  

“We think Coinbase’s direct listing is yet another example of the institutionalisation of crypto assets. Coinbase’s valuation overnight settled at around $86 billion. We think it’s quite easy to see this approaching the value of say Goldman Sachs at $112 billion,” he said.

According to deVere group CEO Nigel Green, Coinbase’s direct listing is a truly momentous day for the cryptoverse, but warned that it could lead to more government scrutiny of the asset class. 

“Should it hit its private market valuation of $100 billion, it would immediately become one of the 85 most valuable companies in the US.

“Of course, this is driven by the fact the world’s two biggest cryptocurrencies, bitcoin and ethereum, to which Coinbase is intrinsically linked, have risen 800 and 1,300 per cent, respectively, over the last year,” Mr Green said. 

He continued, “But with these astronomical price jumps, and as they become increasingly embedded in the global financial system and, critically, as the direct listing on the Nasdaq will reach a wider investment base other than the usual crypto evangelists, investors must expect much greater government scrutiny.”

However, Mr Green highlighted that bitcoin investors shouldn’t be put off by the likelihood of greater government scrutiny.

“Major draconian clampdowns are unlikely as digital currencies are increasingly regarded as the future of money – even by traditionalists. They can’t put the genie back in the bottle,” he said. 

“Indeed, proportionate regulation should be embraced. It would help protect investors, shore up the market, tackle criminality, and reduce the potential possibility of disrupting global financial stability, as well as offering a potential long-term economic boost to those countries which introduce it.”

Bitcoin reaches record high ahead of ‘truly momentous day’
Bitcoin reaches record high
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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