Bitcoin at $28,000 and Coinbase IPO. Weekly highlights
The end of December pleased us with the rise in bitcoin price, news on XRP and reports of the upcoming Coinbase IPO. The latest news and market events are in this article!
BTC is $28,000
The price of bitcoin renewed its all-time high and surpassed $28,000 on the last Sunday of December. As a result of the explosive growth of BTC quotations, its market capitalization reached half a trillion U.S. dollars. Bitcoin has already surpassed VISA and is approaching the Berkshire Hathaway Corporation, which is owned by famous investor Warren Buffett.
According to Cointelegraph’s calculations, if the current trend of growth in the value of BTC continues, its price may reach $100,000 at the end of the next year. At the same time, the bear cycle in the bitcoin market is more stable than three years ago. This is primarily due to a reduction in the supply of BTC, the weakness of the dollar, rising inflation and unprecedented demand for bitcoin from institutional investors.
Investors purchase BTC
Last week, for example, Grayscale Investments, the world’s largest cryptocurrency investment fund, bought 1,319 new coins. In one month alone, this fund bought almost 44% (28,000) of the coins mined by miners.
In an interview with Cointelegraph, Ricardo Salinas Pliego, Mexico’s second richest man and head of the Grupo Salinas conglomerate, said his 2013 bitcoin purchase was his “best investment. After buying BTC for $200, he sold it in 2017 for $17,000 and bought the coin again some time later at a lower price.
Bitcoin was also praised by Francis Suarez, mayor of Miami, who tweeted that BTC was a “stable investment” amid “an extremely volatile year.”
According to management company CoinShares, the total amount invested in bitcoin reached $15.6 billion this year and $792.1 million in the past week. The inflows of investment funds into ethereum were almost $2.5 billion in 2020 and $207.3 million in the past week.
The Grayscale investment fund was able to attract significant funds — almost $251 million. Over the year, the inflow of funds from investors in Grayscale Investments reached $5 billion. The amount of assets under management of the fund exceeded $15 billion.
Ripple in trouble
A record-breaking demand for BTC at the beginning of the week was accompanied by a decline in the Ripple cryptocurrency (XRP), which is the third-largest market capitalization after BTC and Ethereum.
According to The Verge, the fall in the price of Ripple was due to the fact that the SEC (U.S. Securities and Exchange Commission) sued the founders of Ripple for raising more than $1.3 billion by selling the cryptocurrency XRP. The SEC said the company’s founders, Christian Larsen and Bradley Garlinghouse, considered XRP a security rather than a currency, and claimed that they had violated securities laws by selling the cryptocurrency over the past seven years.
At the same time, according to the portal, the SEC considers BTC and Ethereum as currencies. U.S. Justice Department experts recognized Ripple as a currency even five years ago, during another trial. The only difference between Bitcoin and Ethereum and XRP is that the first two coins are added through mining. Ripple, on the other hand, was originally issued in the amount of almost 100 billion coins. Just five days later, on the last Sunday of December, XRP quotes suddenly and surprisingly for traders, soared by 40%.
Simultaneously with the Bitcoin rally, Coinbase, one of the world’s most prominent cryptocurrency platforms, announced that it had filed for an IPO with the SEC. Coinbase was created in 2012. The number of users of the platform from 100 countries has exceeded 35 million people. If the application is approved by the U.S. Commission, Coinbase will become the first U.S. cryptocurrency exchange to list its shares on stock exchanges around the world.