Philip Gradwell, chief economist at Chainalysis, believes that the crypto prices were driven to new highs this week thanks to Coinbase Global Inc COIN's direct listing.
What Happened: Coinbase shares rose as high as $429 during trading hours on Wednesday before dropping down to $328 when markets closed.
The company, now valued above $85 billion, has left a big impact on the industry.
“It has taken 12 years for bitcoin to be adopted, made safe, and to prove it’s worth. The public valuation of Coinbase suggests there is plenty of opportunity left in cryptocurrency. I would say that the IPO is really the end of the beginning for crypto, and the start of the next phase of adoption,” said Gradwell in a recent Market Intel report shared with Benzinga.
Why It Matters: Ahead of the listing, Bitcoin rallied to a new all-time high of $64,863, according to CoinMarketCap.
This surge in cryptocurrency prices in the hours leading up to the listing added a layer of support to Bitcoin’s price rally.
According to data from Chainalysis, more than $125 million has now been spent to acquire 2.3 million bitcoins on-chain at prices higher than $50,000.
“That level of demand to buy and hold at such high prices puts a floor on the price,” noted Gradwell, explaining that the crypto market has “radically changed” over the past six months after the entry of large, institutional investors who have paid high prices to acquire cryptocurrency.
These levels of support at higher prices are only getting stronger, evidenced by the 608k Bitcoin acquired at a price of more than $57,000.
“Such levels of investment require large companies that can face the scrutiny of the public market,” noted the Chainalysis chief.
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