By
Steve Muchoki
April 19th, 2024
Coinbase is seeking to tap the entire Fortune 500 market, a move that would drive Bitcoin (BTC) market price astronomically high.
The second-largest cryptocurrency exchange by trading volume around the world Coinbase is reportedly the lucky facilitator of the $1.5 billion worth of Bitcoin purchase by Tesla Inc (NASDAQ: TSLA). The report by media outlet TheBlockCrypto indicates that Tesla used Coinbase institutional investors’ custodian capabilities to purchase Bitcoins during the first week of February.
Reportedly, Coinbase has emerged as the best option for institutional investors to access the crypto industry, particularly the Bitcoin market. The report noted that Coinbase could be having more than five Fortune 500 companies as clients. Among them is the MicroStrategy that has significantly purchased Bitcoin as a hedge factor against the depreciating dollar.
However, it is worth noting that Coinbase has not officially confirmed the report up until the time of reporting. Thereby leaving room for speculation on what transpired.
Coinbase Was Chosen by Tesla as It Rules the Crypto Industry
Coinbase has over time become the largest cryptocurrency exchange in the United States handling approximately $3.6 billion of daily trading volume according to Coinmarketcap. The firm has been in existence since 2012, thereby making it a major shareholder of the Bitcoin market. The Bitcoin demand is increasing by the day. Institutional investors led by banks are likely to follow the same path as Tesla.
It has been teased over the social media platforms, Tesla has made more profits in investing in Bitcoin than it did in car sales last year. Such a paradigm would likely compel major companies’ CFO to consider adding Bitcoin to their balance sheet.
Moreover, the asset is decentralized with a known inflation rate, unlike the fiat currencies. Coinbase continues to trade in the Nasdaq Private secondary market and its shares have surged significantly in the past week. According to the reports, Coinbase shares were trading around $303 up from $200 last week.
Similar stock speculation as observed with the GameStop shares is likely to be the key factor in the Coinbase stock rally. Coinbase now has a reported market valuation of approximately $77 billion, thanks to the increasing value of Bitcoin.
At the time of writing, Bitcoin was trading around $51,699.73 after adding approximately 0.9% in the past 24 hours. All parameters indicate the bulls have the upper hand and likely to hold strong for the better part of the year.
The asset continues to make higher – highs and higher- lows both in the smaller and larger time frames, which is an indication of a strongly rising trend.
Coinbase is seeking to tap the entire Fortune 500 market, a move that would drive Bitcoin (BTC) market price astronomically high. Besides, the low supply and high demand are just a recipe for an imminent rally.