The CME Group recently announced the ability to trade Bitcoin futures. The announcement has sparked a snowball effect of investors that are finally starting to believe in Bitcoin. With that in mind, Coinbase has taken full advantage of this situation. In the past 24 hours, Coinbase has been able to add 100,000 new users to their exchange.
Coinbase is so successful because it has made cryptocurrencies easy to access. Users are able to plug in their bank or credit card information and start buying cryptocurrencies in less than 10 minutes. Using this tactic, Coinbase has been able to sign up over 15 million users in 32 countries around the world.
The CME announcement has many investors on their toes. Many individual investors think that institutions are going to start heavily investing into Bitcoin and they want to be in the game before the explosion occurs. Coinbase is the easiest way for these investors to get access to Bitcoin quickly.
I hope that Coinbase has the protocol in place so that they can handle this type of surge. In the past, surges have caused exchanges to crash and massive price manipulations to occur. Flash crashes can sometimes occur in these situations when large orders go through and systems are not able to handle them correctly.
What Does This Mean?
It is estimated that 0.5% of the world’s population is invested in cryptocurrencies. The growth potential is unbelievable. The surge of new investors is predicted to make a positive impact on the price of Bitcoin. Increasing the market cap is a process of pushing the price up with the limited supply that is available.
We have hundreds of thousands of novice investors jumping into a complex market. It will be interesting to see how the market reacts. I believe we are going to see a Bitcoin price over $10,000. It is just a matter of time.
Comments are off this post!