This week has been a much wilder ride than the weeks previous, with Bitcoin, Ether, and other cryptocurrencies falling 15 percent or more before recovering nearly to their previous high levels.
Along with the price action, it was another exciting week in the cryptocurrency space on other levels. Read more in our roundup!
Bitcoin bounces back after nearly dropping below $30,000
Earlier in the week, many expected the beginning of a widespread cryptocurrency bear market and a market top. The sentiment came as Bitcoin almost broke the $30,000 support level. Some speculated that this occurred due to moves from large scale institutions that wanted to take some profit. However, the assertion was not confirmed.
This price drop, which also drove Ether below the $1,000 mark, wiped over $3 billion from the market in one day. Since the dip, most cryptocurrencies have returned much closer to their previous all time high prices.
Sushiswap and PayPal see all time high transaction volume
Both Sushiswap and PayPal’s cryptocurrency exchanges saw record volume this week. The volume indicates that either more investors or more capital are entering the space. As we noted in the roundup (above), this happened during extreme price swings.
Sushiswap, a decentralized exchange, saw $700 million in trading volume, while PayPal, a centralized exchange that does not let users withdraw Bitcoin from its platform, held over $242 million in transactions. In the course of a few days, PayPal more than doubled its previous daily volume record.
Bakkt will be the first crypto exchange to go public
Bakkt, the SEC regulated cryptocurrency futures exchange run by Intercontinental Exchange Inc., the owners of the New York Stock Exchange, will be the first cryptocurrency exchange to go public. Unsurprisingly, the exchange will be listed on the NYSE. The exchange is will merge with a special purpose acquisition company (SPAC).
Bakkt will be going public with a $2.1 billion valuation, which compared to its competitors may make it slightly over-valued. Coinbase, a crypto exchange with a stronger foothold in the space, is also planning to go public soon but with a possible $28 billion valuation. Although the Coinbase IPO will be taking place at a valuation 12 times higher than Bakkt, Coinbase has a daily transaction volume of $4 billion compared to Bakkt’s most recent daily volume of around $20 million.
We’ll see you next week for another BeInCrypto Weekly News Roundup.
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