The entire financial world is waiting in wonder for Coinbase Global Inc. (Nasdaq: COIN)’s initial public offering (IPO), with cryptocurrency analysts particularly bullish on tomorrow’s event.
• Bitcoin (BTC, Tech/Adoption Grade “A-”) surged more than 4% today to bust through $60,000 and set a new all-time high around $63,000.
• Ethereum (ETH, Tech/Adoption Grade “A-”) set a new all-time high today, too, rallying more than 6% to above $2,200.
• Ripple (XRP, Tech/Adoption Grade “B-”) has risen like a phoenix in the months since its de-listing from most U.S.-based exchanges.
Bitcoin has stolen the spotlight on the eve of the Coinbase IPO, as it commandingly set a new all-time high today just above $63,000. When Bitcoin pushes to new all-time highs, it tends to surge abruptly rather than make slow and steady moves upward. It’s unpredictable.
This appears to be a breakout from a two-month (or so) consolidation period, and it could very likely be the beginning of a much larger push higher. There isn’t much resistance between here and the psychologically important level of $100,000.
It’s near impossible to predict exactly how high and how fast BTC could move at this point. Our target for this next bull phase is somewhere between $100,000 and $250,000 over the next six to 18 months.
Here’s BTC in U.S. dollar terms via Coinbase:
Ethereum has also set new all-time highs today as it continues its April push, rising more than 18% so far this month. ETH is up 6% on the day, as it’s crossed above $2,200.
Vitalik Buterin’s smart-contract platform could be rising due to its ever-improving fundamentals, the rising adoption of its decentralized applications, the technical setup or on the news of Coinbase’s IPO filing.
Whatever the case, ETH finally seems to have definitely cleared the $2,000 hurdle after retesting that level last week and confirming support there. This move today could mark the start of the next big leg up for Ethereum.
Here’s ETH in U.S. dollar terms via Coinbase:
Ripple has skyrocketed this year, up more than 210% in April alone. XRP is at its highest level since January 2018, when it peaked around $3.50.
The rise in the global payments system could be justified, or it could just be hype. The main thing here is the Securities and Exchange Commission’s looming investigation.
An unfavorable outcome would clearly be detrimental to XRP’s value. If it wins the case and gets re-listed on U.S.-based exchanges, this month’s price action could just be the start of things to come.
Here’s XRP in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
• Messari, in a sign of gathering consensus, seems to suggest Coinbase is the reason for today’s new highs.
What’s Next
Let’s stipulate that this week’s price action is attributable to the Coinbase IPO, which is sending shockwaves throughout the traditional financial system.
It’s rumored that Coinbase could be valued at around $100 billion, with the potential to rise substantially after shares hit the public market on Wednesday. Every traditional bank in the world will take notice, as that valuation is too high to ignore. This could be a catalyst for a new influx of massive amounts of fresh capital into the digital asset space.
Whether or not the Coinbase IPO has driven Bitcoin and Ethereum to new all-time highs, both assets have cleared important technical hurdles on their respective price charts. Remember, we’re always looking for daily closes above these technical levels. But it sure looks like both assets will close above those levels today, around $2,200 for ETH and approximately $62,000 for BTC.
Be prepared for a lot more attention — and a lot more scrutiny — to be directed at the cryptocurrency industry.
And don’t be surprised when this proves to be the tipping point that confirms the inevitability of blockchain technology as a viable economic infrastructure and Bitcoin as a long-term store of financial value.
Best,
Alex
