Bitcoin skyrocketed 5% after Tesla’s founder Elon Musk officially announced it will accept the cryptocurrencies as payment.
Is it time to buy Coinbase?
Coinbase, one of the world’s top crypto exchanges, has started the year on a positive footing as it has become the first crypto exchange in history that went public. On April 14, it was listed on Nasdaq. However, 60% of its trading volume depends on Bitcoin and Ethereum, which have lost a large part of their value recently. For newbies, it can be frightening, but for experienced traders – it’s an opportunity to buy the dips.
Bitcoin’s dominance wanes
Coinbase may have problems if it continues to be as dependent on Bitcoin as it’s now as Bitcoin’s dominance is waning. That’s why the crypto exchange is adding new cryptocurrencies. For example, it has recently announced it would add Dogecoin to its exchange in 6-8 weeks (the one that Elon Musk called a ‘hustle’ in a Saturday Night show).
What’s wrong with Bitcoin?
As Elon Musk tweeted, Bitcoin mining requires a lot of electricity, which in turn increases the usage of fossil fuels and pollutes the environment. Indeed, this problem exists as bitcoin mining uses more electricity than most countries do. And if other eco-friendly companies join Tesla and reject payment in Bitcoin, the cryptocurrency may fall even deeper, and for Coinbase it would be a blow.
Coinbase’s earnings results came out slightly worse than expected, but the broad picture is great. The company has attracted 56 million users and its revenue tripled from the quarter before.
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Coinbase is touching the dips these days. Therefore, it’s important to keep an eye on the chart as the reverse up may occur soon because the popularity of cryptocurrencies is growing despite all these negative factors mentioned above.
The US Institute for Supply Management will release ISM manufacturing PMI on July 1, 17:00 GMT+3.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on June 30, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).