Significant Bitcoin Drops As Coinbase Announces IPO

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest Bitcoin brokerage service providers announced details of its upcoming Initial Public Offering (IPO).

The cryptocurrency exchange has released documents as part of its IPO on the NASDAQ stock exchange. Unlike most public offerings, Coinbase’s will be a direct listing, which means that it won’t be looking to raise any additional funds. The documents also reveal what the exchange believes to be events that could lead to further destabilisation of Bitcoin and Ethereum prices.

These two cryptocurrencies are responsible for over 56% of all trading volumes on Coinbase. As a result, the exchange depends on them for a significant portion of its fees and overall revenue. Successful hacks, forks, and general disruptions are stated as the main threats to these and other coins. 

Concerns of further Bitcoin drops are also attributed to the potential unveiling of Satoshi Nakamoto, the entity or person behind the creation of Bitcoin. Nakamoto is estimated to be sitting on $30 billion worth of Bitcoin and any sudden sale could flood the market, devaluing the coin catastrophically.

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