Less than a month after printing its previous all-time high on February 21st, the flagship crypto has done it again. Bitcoin just surged past and charted fresh highs, hitting $60,000.
At the time of writing this report, Bitcoin traded at $60, 000 with a daily trading volume of about $60 billion. Bitcoin is up 5.13% for the day. The world’s most popular crypto dominance was also around 61.5%, up almost 2% in the past few days.
On March 13th last year #Bitcoin dropped 40% and hit a low of $3.8k.
— Binance (@binance) March 13, 2021
Crypto pundits are however not surprised at such a feat amid the roller coaster sessions in the Bitcoin market over the past month, as many people question if the bull-run had come to its end.
The world’s flagship crypto is already printing wealth at record levels not seen in recent years.
This is coming on the backdrop that investors are flocking into Bitcoin on the account credible institutional investors from Tesla Inc, BlackRock to Square move a portion of cash reserves into cryptocurrencies as digital assets become more mainstream.
The flagship crypto has gained more than fourteen times its previous value sighted about a year ago when it traded around $3,800.
Global investors and crypto experts anticipate that Bitcoin’s trajectory remains optimistic. There is no doubt, 2021 continues to shape up as a very exciting year for Bitcoin.
The flagship crypto has gotten more credibility in recent days from blue-chip companies like Mastercard, and America’s oldest bank, BNY Mellon, showing support for Bitcoin. Mastercard had earlier disclosed that it would open up its network to some cryptocurrencies, including Bitcoin.
Ripple’s CTO advises investors to reduce their crypto investments
The crypto leader recently made the warning on Twitter.
David Schwartz, Ripple’s Chief Technology Officer has advised investors and crypto traders to consider offloading some amounts of their crypto holdings to reduce risk. The crypto leader recently made the warning on Twitter.
“This is probably going to be my least popular tweet ever, but: If you have life-changing amounts of cryptocurrency, please take some time to seriously consider selling some to reduce your risk and exposure. This is not any kind of prediction about what the market will do,” his tweet stated.
This is probably going to be my least popular tweet ever, but: If you have life-changing amounts of cryptocurrency, please take some time to seriously consider selling some to reduce your risk and exposure. This is not any kind of prediction about what the market will do.
— 𝘋𝘢𝘷𝘪𝘥 "𝘑𝘰𝘦𝘭𝘒𝘢𝘵𝘻" 𝘚𝘤𝘩𝘸𝘢𝘳𝘵𝘻 (@JoelKatz) April 13, 2021
To lend credence to his advice, about $1.39 billion dollars were liquidated in the crypto market arbitrarily with about 240,759 traders liquidated.
The largest single liquidation order happened on Huobi-XRP valued at $11.69 million.
Despite the recent pullback in some trending crypto assets, some crypto traders remain upbeat that crypto assets are the best tools for hedging against rising inflation, offer better returns than many traditional assets, and are set to win more attention from the corporate world.
Many weeks ago, the Financial Conduct Authority, a leading United Kingdom financial regulator, issued a piece of stern advice on the risk associated with trading crypto assets.
The statement highlighted the risks associated with investing in Bitcoin and other crypto-assets and warned the public that there were high chances that all their funds could be lost.
“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.
Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.
Coinbase success: Rapper Nas among early investors, set to make over $100 million
Nasir Jones is amongst the earliest investors in Coinbase via his Queensbridge Venture.
The trending news in the cryptoverse is the successful direct listing of Coinbase on the NASDAQ, which happened on Wednesday, 14th April 2021. So far, the returns are looking very good for early investors in the crypto trading company.
According to CNBC, Coinbase closed its first day in NASDAQ at a value of $328.28 per share and a valuation of $85.8 billion. During the course of the day, Coinbase valuation exceeded $100bn but later dropped to $85.8bn.
Rapper Nas and QueensBridge Venture Partners
Legendary rapper, Nasir Jones who owns and runs Queensbridge Venture Partners together with its Co-Founder Anthony Saleh were amongst the earliest investors in Coinbase.
QueensBridge Venture Partners invested in Coinbase as early as 2013 in a Series B round back when it raised $25 million. Around that time, Coinbase was valued at about $143 million. According to QueensBridge Co-Founder, the venture capital firm made an investment of $100,000 to $500,000.
According to Coindesk, at the time of Nas’ investment, a single unit of Coinbase share sold for $1.00676. With an investment of $100,000 to $500,000 QueensBridge stands to own 99,329 to 496,642 unit shares.
With Coinbase trading at an average price of $350 yesterday, Nas and his VC firm stand to earn between $34.76 million and $173.8 million ROI, according to Coindesk. The number can be a lot higher given that this is just Coinbase’s first day on NASDAQ and some experts expect its price to increase.
Nas celebrated his smart investment with a tweet eulogizing cryptocurrency. His VC firm also invested in Robinhood and Dropbox.
What you should know
- Coinbase was listed directly. This is quite different from an initial public offering (IPO). According to Investopedia the difference between an IPO and a direct listing process is the presence and absence of new shares.
- In an IPO, the company involved creates new shares and employs underwriters before going public.
- In a direct listing only existing or outstanding shares are made public. Companies that pursue this strategy usually don’t employ underwriters.
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