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when will bitcoin hit $100,000

When Will Bitcoin Hit $100,000? Maybe Sooner Than You Think!

Many experts are now growing more confident in their beliefs that Bitcoin will hit $100,000 sooner than people think. Many also strongly believe that it will hit that price point by the end of 2022. These claims are backed by technical and fundamental analysis.

News and Indications

The world of cryptocurrency has recently come about with some potentially bullish news. To start with, President Joe Biden has finally signed the cryptocurrency executive order in March of 2022. The markets had been waiting on this order for months to gauge its potential impact. As a result of this executive order, BTC jumped higher with the removal of uncertainty from the market, however it has recently suffered declines along with the broader market. However the issuance of this executive order did remove the overhang of some uncertainty that had potentially been holding back many crypto assets. Many experts say this executive order may spark other occurrences that help propel Bitcoin to greater heights.

Some analysts agree that the price of each bitcoin could go as high as a million dollars. Out of all of the catalysts that have got bitcoin so far, Walmart just may be the one that pushes it significantly higher. It is now hosting Bitcoin ATMs where you can go in and buy bitcoin with cash.  

In other happenings, you also have the Houston pension funds that are supposed to pay retired firefighters. They have a five billion dollar pension, out of which, they used 25 million dollars to purchase Bitcoin and Ethereum. This is a good indication that big money investments are now starting to enter the crypto space.

Facebook Partners with Coinbase

Facebook is partnering with Coinbase to introduce its wallet. Very soon, people will be able to send cryptocurrencies to each other using the platform. Not to mention, Facebook’s brand reinvention into Metaverse is also a bullish indication for Crypto. Anyone who has not invested in Bitcoin yet may change their minds once Facebook introduces its crypto wallet.

Bitcoin’s Price

The market cap of Bitcoin has reached 1.2 trillion dollars which means that it is very close to surpassing the entire market cap of silver. Despite its rising price, many critics still believe that Bitcoin does not hold long-term value, and this is because its price has fluctuated over many stages and cycles. To get a better perspective on the price of Bitcoin and where it could be headed, it is important to look at the stock-to-flow model.

This model looks at finite limited resources such as gold, diamonds, and other commodities. Looking at these commodities, one can somewhat accurately predict the price of a particular asset sector in the future. Many experts have used the stock-to-flow model and applied it to bitcoin.

Keep in mind that this model only looks at the stock, which refers to the amount of something in existence. It then compares it to the flow, which refers to the rate at which you create, produce, or find something. The stock-to-flow model for bitcoin has been extremely close to following its price, and according to its chart, the price is on the verge of something very big about to happen.

Bitcoin is Backed by Strong Narrative

One of the biggest reasons why bitcoin has been accelerating in value is because of the narrative behind it. Money is on everyone’s mind, and the narrative surrounding bitcoin is getting stronger, which will lead to further adoption. This narrative has to do with how the government is still printing plenty of fiat currency and using it as an easy escape to get rid of their economic shortcomings.

Excessive printing of money is causing high rates of inflation in the country along with other factors. This allows them to use the money to buy up bonds, corporate debt, and other assets. This incentivizes people with money to buy assets which are perceived to be a store of value, like commodities and now also cryptocurrency. All of this has the effect of asset inflation which leaves more dollars in the system competing for the same amount of goods.

This does not mean that your net worth is increasing. Instead, it simply just takes more money to get the same amount of available goods. This narrative of money is very persistent and will set the foundation for bitcoin adoption. 

How Talking Points and Distrust Will be Enough

Inflationary pressures have investors strongly considering alternative asset classes as a way to stay ahead of the curve. Historically investors have looked to perceived “stores of value” like gold and silver to stay ahead of inflation, but cryptocurrency has potential in this area.

For some investors, they may consider putting all of their money into stocks, as a means to outpace inflation. For some, this means putting their money into bitcoin and crypto assets. Many are even labeling bitcoin as the fastest horse in the race of all existing asset classes according to the data. Some models predict that bitcoin is the best hedge against inflation.

Final Thoughts

Overall, gauging bitcoin’s performance will require plenty of patience, and since it is dependent on some external factors like world events, anything can happen in terms of its valuation. Whether or not its price will reach the $100,000 mark by the end of 2022 is very debatable. However, there are more bullish fundamental indicators than bearish ones, which is why you can expect good things from your bitcoin investment.

Coinbase Registers with the SEC

Coinbase Registers with the SEC

On May 10th, Coinbase announced that it had filed for a registration statement with the Securities Exchange Commission (SEC). The announcement came along with their reports for the first quarter of 2022, where they reported missing the revenue estimates that were previously given by analysts and sending shares down as much as 19%.

In a released statement from Coinbase discussing their registration statement with the SEC, the statement was intended to be used for potential prospective offerings, including the sale of new securities. However, new securities won’t be immediately available.

This statement, and their recent Q1 results, came during a major sell-off in the crypto market which has been referred to by some as a crypto crash, with Bitcoin dropping below $30,000. Coinbase has lost more than 70% of its value since late March.

Coinbase commented on its goals and approach to capital structure over the years, stating that its aim has always been to raise capital at the lowest cost possible to its shareholders. They expect that the shelf registration would speed up the process of issuing securities to a matter of days, which they hoped would allow them to time the market conditions better.

While these are the company’s statements on the matter, the reality is that their decision could have been driven by other factors, such as the uncertainty surrounding crypto assets regarding the U.S. federal securities law, as well as the mounting pressures for crypto regulation.

Coinbase reported, in their filing, that the SEC traditionally doesn’t confirm the status of crypto assets as securities in advance. Since the evolution of crypto assets and their classification is still ongoing, it’s difficult to predict how to classify them. The only crypto assets that the SEC has given a definitive view on are Bitcoin and Ethereum, which they don’t see as securities. However, Coinbase stated that the SEC’s views are not binding for courts, other agencies, or even the SEC itself. Coinbase believes that should the SEC change its approach, it could have a significant impact on the business.

Other crypto assets have yet to be ruled out as securities by the SEC under their current rules, though the company’s analysts argued that none of the assets traded on their platform are considered securities.

For their part, Coinbase gave a warning on their filing for people investing in crypto assets. They warned that should the SEC, or any other regulatory authority be it national or foreign, determine that a crypto asset traded on the platform was a security, Coinbase wouldn’t be able to continue offering said asset until they could do so in a compliant manner.

This statement helps shed light on Coinbase’s decision to file with the SEC, as they seem to be preparing in advance to offer crypto assets on their platform that are considered a security by the SEC or any court.

The registration has more potential benefits for Coinbase, as it would allow them to provide the company’s crypto products and assets on top of those from third parties. As of now, there is regulatory uncertainty regarding the company’s yield-generating activities such as staking and lending. These could eventually be considered securities, but the filing would allow Coinbase to act quickly on that matter.

Coinbase also revealed that it had received investigative subpoenas from the SEC regarding its stable coin and yield-generating product plans. Should these be classified as securities, the registration could help the company keep these services afloat by meeting the necessary compliance measures.

In the last part of their statement, Coinbase mentioned that they believed this shelf registration statement would enhance the company’s flexibility, as well as enable access to other capital markets more efficiently and effectively when market conditions were optimal.