Key Takeaways
- Bitcoin moves lower after Coinbase’s direct listing in the public markets
- The digital asset trades sideways on Thursday, floats in the green near $62,500
Bitcoin Price Slides Off All-Time High
The price of the largest digital asset skittered down from its all-time record on Wednesday. Bitcoin jumped nearly 6% yesterday, following another 5% rise on Tuesday, to reach as high as $64,850 in the afternoon trading hours on Wednesday. As the session progressed, bitcoin slid and ended the day in the red, down a little over 1.2%.
Coinbase Direct Listing Affects Bitcoin
Ending Wednesday’s session in negative territory snapped bitcoin’s six-day winning streak that shot the price from $55,000 to the all-time peak. Buying momentum yesterday sapped from bitcoin, following the direct listing of Coinbase, a cryptocurrency exchange. The US company became the first big player from the crypto space to be listed in the public markets. The listing on the Nasdaq means that traditional investors will be buying bitcoin indirectly by owning shares in Coinbase. The crypto exchange holds around $230mn in bitcoin on its balance sheet.
The indirect ownership of bitcoin in the public markets was first introduced with Tesla’s purchase of $1.5bn worth of bitcoin, which was added to the EV maker’s balance sheet. Although a minor fraction of just 0.3% of Tesla’s market value, the bitcoin investment was the first to land in the traditional financial markets, enabling investors in Tesla, the Nasdaq Composite, and the S&P500 to indirectly own a tiny amount of bitcoin.
Retail Traders Boost Bitcoin Price
Increased interest from retail traders boosted bitcoin’s price prior to the listing. In contrast, capital flows by institutional investors mark a slight decrease during the past two months. However, the move towards mainstream adoption remains strong as many banks are now in the making of services that will allow their clients to trade, invest and hold bitcoin and other cryptocurrencies.
Moreover, central banks around the world work to find ways that will allow cryptocurrencies to peacefully exist in society and be used as a legitimate means of payment and store of wealth.
Presently, bitcoin is trading in the neighborhood of $62,500, almost 4% decline from its yesterday’s session high. The digital asset remains well-bid on Thursday as it is still above the opening price near $62,300.
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