Bitcoin jumped to an all-time high as the mood in crypto markets turned bullish before the listing of Coinbase Global Inc. this week.
The currency rose to$ 63,246, exceeding the previous peak in March. Stocks from the cryptocurrency Riot Blockchain Inc. and Marathon Digital Holdings Inc. also advanced.
Crypto bulls are in force as a growing list of companies embrace Bitcoin, even as skeptics doubt the durability of the boom. In one of the most potent signs of the growing acceptance of cryptocurrencies by Wall Street, Nasdaq will sell its shares on 14 April at a valuation of around$ 100 billion.
Coinbase's debut marks the first official juncture between the traditional financial avenue and the alternative crypto road, wrote Ipek Ozkardeskaya, a senior analyst at Swissquote in a note. As such, a traditional addition to Nasdaq should act as the endorsement of cryptocurrencies by successful investors.
Morgan Stanley and Goldman Sachs Group Inc. have announced plans to offer clients access to crypto investments. Tesla announced a$ 1.5 billion investment in Bitcoin earlier this year and has started accepting it as a payment for electric cars more recently.
But skeptics argue that digital coins have been inflated by stimulus that's also sent stocks to records. Regulators around the world are stepping up supervision and casting doubt on its usefulness as a currency.
Isabel Schnabel, member of the European Central Bank executive board, called Bitcoin a fundamental asset without any recognizable speculative value in an interview with Der Spiegel this month.
Coinbase's digital debut this week is also boosting the public coins of other cryptocurrency exchanges, such as Binance Coin, which has jumped to become the third-most valuable cryptocurrency behind Bitcoin and Ether.
Many analysts expect the rally to continue; the lowest 30-day volatility since October tells us Bitcoin is ripe to exit its cage and continue in a bull market on its way to the next$ 10,000 move, according to Mike McGlone, Bloomberg Intelligence commodities strategist.
Similar to the initial coin funding for Tesla, the Coinbase IPO could add to the growing list of crypto-validation milestones in 2021. For more articles like this, please visit bloomberg.com at bloomberg.com.
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