Crypto Remains Red-Hot in Aftermath of Coinbase Listing

It doesn’t appear that the Coinbase Global Inc. (Nasdaq: COIN) direct listing was a “buy the rumor, sell the news” event after the cryptocurrency market sustained its rally today.

Though it’s cooled off after a hot start, America’s largest crypto exchange is still valued at more than $62 billion.

Nearly all of the most prominent cryptocurrencies are trading near all-time highs as the market remains red-hot.

•  Ethereum (ETH, Tech/Adoption Grade “A-”) extends its all-time high towards $2,500 after gaining 20% this week.

•  Chainlink (LINK) is up more than 20% since yesterday, setting a new all-time high above $44.

•  THORChain (RUNE) has run up a torrid 157% this month, driven by the exciting launch of its multichain Chaosnet, which allows for the decentralized trading of native assets.

Ethereum has consistently traded above its 21-day moving average since late March, and it’s pushing the symbolic $2,500 price level. Once achieved, all eyes will be on whether the second-largest cryptocurrency by market capitalization can crack $3,000.

This recent move is a breath of fresh air for the Queen of Altcoins after it struggled to keep up with the broader market. Volume has remained relatively consistent, and we’ll continue to track any shifts there.

Here’s ETH in U.S. dollar terms via Coinbase:

Chainlink has staged a major breakout over the past several days on strong volume. It’s up more than 20% today, extending a near-60% rally this month. Like Ethereum, Chainlink had struggled to break above its 21-day moving average until late March.

Today, it looks like LINK’s taken off. The next major milestone is $50. LINK’s momentum should be helped by today’s announcement of the new Chainlink 2.0 network that stores data off-chain.

Here’s LINK in U.S. dollar terms via Coinbase:

THORChain has run up significantly this month, leading up to its launch of Multi-chain Chaosnet.

The protocol will allow for the decentralized swapping of native assets for Bitcoin, Ethereum, Bitcoin Cash (BCH, Tech/Adoption Grade “B-”), Litecoin (LTC, Tech/Adoption Grade “B-“)  and Binance (BNB, Tech/Adoption Grade “C-”) networks without the need of a custodian. While fees are still a potential concern, this new technology reduces counterparty risk from other institutions holding your coins and tokens in their custody.

This development was three years in the making, and we’re seeing the major impact it’s having on RUNE’s price.

Here’s RUNE in U.S. dollar terms via FTX:

Notable News, Notes and Tweets

•  Pomp compares the performance of Bitcoin vs. Gold and the S&P 500 Index.

•  MicroStrategy Inc. (Nasdaq: MSTR) CEO Michael Saylor highlights major institutions’ change in sentiment towards Bitcoin.

•  The Senate confirmed Gary Gensler as the new chair of the Securities and Exchange Commission (SEC), where he’s expected to take a more accommodative approach to crypto adoption than his predecessor.

What’s Next

Coinbase’s direct listing is an exceptionally significant event for the crypto space, and its valuation validates it as a major financial institution of the future.

Brokerage firm BTIG and investment bank D.A. Davidson initiated coverage on Coinbase, and their price targets are extremely bullish.

BTIG rates Coinbase a “buy” with a price target of $500 per share, while D.A. Davidson raised its target to $650. These ambitious targets imply market capitalizations of $102 billion and $133 billion, respectively.

If it reaches D.A. Davidson’s target, Coinbase will be worth more than investment banking giant Goldman Sachs Group Inc. (NYSE: GS) and megapayment processor Square Inc. (NYSE: SQ).

With the confirmation of Gary Gensler as chair of the SEC, crypto investors are excited for the prospects of approving Bitcoin-focused exchange-traded funds (ETFs).

These bullish developments show that crypto is here to stay and that long-term adoption by major institutions is now imperative.

The long-term outlook for crypto has never been more bullish, as a combination of widespread adoption and macroeconomic uncertainty continues to push the industry to new milestones.

Best,

Sam Blumenfeld