After the successful listing of the “first crypto stock”, the stock price trend of Coinbase is improving, and professional investment institutions also bought in the first time, and the confidence of investors in the cryptocurrency market has once again been boosted. Interviewees believe that after the expected launch of Coinbase’s positive listing, short-term cryptocurrency market volatility may intensify, investors should pay attention to risks, and non-professional investors should be cautious in using leverage tools.
After the successful listing, Coinbase’s stock price has performed well. As of 20 o’clock on the 15th, Beijing time, Coinbase’s pre-market share price rose more than 8% to about $354. The day before, Coinbase’s stock price closed up more than 30% to US$328.28, with a market value of more than US$61 billion.
“Coinbase’s successful listing has fulfilled market expectations. The current stock price increase has brought additional benefits to the market. Investors will not worry about the issue of the redemption of cryptocurrencies. In addition, many of Coinbase’s businesses have also received mainstream financial Institutional recognition has promoted cryptocurrency to become a mainstream investment product.” Ma Tianyuan, a partner of Encrypted Asset Angel Fund Wuwei Investment, told a reporter from Shanghai Securities News.
Institutions have also shown their optimism about the prospects of the cryptocurrency market with actual actions. Catherine Wood, CEO of Ark Investment Management, known as the “female Buffett,” made the first shot, and all three of its funds opened new positions to buy Coinbase on Wednesday. Among them, flagship fund ARKK bought 512,500 shares, financial technology innovation theme fund ARKF bought 89,600 shares, and Internet innovation theme fund ARKW bought 147,000 shares. Based on the closing price of Coinbase on Wednesday, Katherine Wood holds a total of approximately $246 million in market capitalization of Coinbase.
The US investment bank BTIG included the newly listed Coinbase in the form on Thursday, giving it a “buy” rating with a target price of $500. Previously, MoffettNathanson of the New York Research Institute gave Coinbase a one-year target price of $600.
Although the market is bullish, some institutions have reminded that under the premise that it is difficult to predict what will happen in the future, short-term cryptocurrency market volatility will be more intense than before.
“In the bull market, the price of various assets will have higher premiums, and some assets will rise irrationally. Investors should carefully choose investment targets and pay attention to risks.” Binance China Blockchain Research Institute researcher Zhang Ming told the Shanghai Securities News reporter.
According to real-time data from the blockchain data and intelligence provider Glassnode, as of 20 o’clock on the 15th, Beijing time, the 8-hour long funding rate of the Bitcoin perpetual contract reached 0.1284%, and the difference between the sub-delivery contract and the spot price gradually increased to 8,000 US dollars. . In other words, the current long bitcoin side needs to pay 0.1289% of the principal per hour to the short side, which means that long bitcoin needs to pay a higher price, but investors continue to go long.
Ma Tianyuan believes that the listing of Coinbase means that the valuation ceiling of the cryptocurrency market has been opened. At present, the level of leverage in the market has increased. It is recommended that non-professional investors reduce the use of leverage and other derivative instruments and enter the market cautiously.
Regulatory policies are still one of the uncertainties in the price trend of cryptocurrencies. In the future, countries may implement strict legislation on cryptocurrencies. Fed Chairman Powell said on Wednesday that cryptocurrency is a speculative tool. Previously, the European Union planned to specifically target cryptocurrency legislation.
“Encrypted assets have been moving forward in controversy. We have seen the attitudes of many regulatory agencies improve. It is expected that the supervision of encrypted assets in various countries will gradually improve in the future, which is conducive to the legal and compliant development of cryptocurrencies.” Zhang Ming told reporters.
On Thursday, the world will usher in the world’s first reverse Bitcoin exchange-traded fund (ETF), which will be listed on the Toronto Stock Exchange (TSX), allowing investors to short Bitcoin futures.
In this regard, Zhang Ming believes that there is never a lack of short-selling methods for encrypted assets, and a wealth of financial tools can provide investors with more choices and promote healthier price discovery.
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