Bitcoin (BTC) remains unfazed by Coinbase mania

Bitcoin (BTC) endured the warning of a market washout by Galaxy Digital CEO Mike Novogratz following the public listing of digital currency exchange Coinbase.

Explaining his point, Novogratz said that he has “seen a lot of weird coins like Dogecoins and even XRP have huge retail spikes. That never ends well, and so we’ll probably have a washout at one point.”

But despite that, the leading cryptocurrency is comfortably sitting at near $62,500 and within reach of its Wednesday’s price, when Coinbase’s shares also rose to a high of $429.54 before ending the day at $328.

Coinbase Effect on Cryptocurrencies

According to crypto exchange EQUOS, it was obvious that Bitcoin would record a new all-time high on the day that Coinbase went public, and one can even attribute the gains to the much-awaited event.

On that very same day, the crypto market leader broke out of its below-$60,000 level in days and reached a record high of $64,802.

But despite not being listed in Coinbase, XRP, and Dogecoin, and other digital currencies rallied. For example, XRP recorded a three-year high of $1.9 last Wednesday, representing a 220% gain, while for the past three days, Dogecoin grew by 85%.

A Common Trend

Joel Kruger, the currency strategist at LMAX Digital, said the crypto market is now seeing one of the most common trends: Bitcoin, XRP, and other digital currencies beginning to pull back, some slowly, from the highs they have recorded on Wednesday following the move of Coinbase.

He added that it is but common for a market to be in a frenzy in anticipation of such a huge event, so the effects it had on cryptocurrencies were expected and wasn’t a surprise at all.

Kruger also said that very soon, the focus will be back to the bigger picture, such as the current rate of inflation in the U.S. that is seen to strengthen investment in Bitcoin and gold.

 

Image courtesy of Karolina Grabowska/Pexels

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