Bitcoin tumbles as Iran Israel Conflict Escalates
πππBitcoin 's price experienced a sharp decline today, hitting a low of around USD 60,600. The sharp drop comes amid the escalating conflict between Iran and Israel.
$Coinbase Global, Inc.(COIN)$
Is Coinbase a Buy now?
Coinbase has played a prominent role in the Cryptocurrency markets since its inception in 2012. It has experienced 3 of Bitcoin Halving cycles. The next Bitcoin Halving Event is just next week where the rewards for mining Bitcoin will be halved again.
The major difference in the Bitcoin Halving Event this time is all about Spot Bitcoin ETFs. These Spot Bitcoin ETFs are a catalyst in the recent all time high of Bitcoin price of USD 73,780.07 since it was launched.
Spot Bitcoin ETFs are a game changer for the average investor. Instead of buying Bitcoin directly, we can now buy and sell Bitcoin ETFs just like any other stocks.
The SEC approved 11 Spot Bitcoin ETFs of which 9 Spot Bitcoin ETFs rely on Coinbase for its custodian services including$iShares Bitcoin Trust(IBIT)$ which is the largest Bitcoin ETF with market capitalisation of over USD 10 Billion.
Coinbase has seen an increase in its revenue in custodian services as well as trading and financing. In Q423 Coinbase has posted a quarterly profit for the first time since 2021.
Coinbase's transaction revenue grew 83% in Q423 to USD 529 million driven by higher volatility and asset prices.
Coinbase reported a USD 273 million profit in Q423. For the full year of 2023, it earned USD 95 million on USD 3.1 million in revenue. In contrast in 2022, Coinbase had a USD 2.6 billion loss. Revenue was USD 954 million in Q423, up 41% from previous quarter.
Coinbase is the largest crypto exchange in the US and one of the biggest in the world. Even though the current Iran Israel Conflict may put a dampener on Coinbase, I believe that the Bitcoin Halving Event next week would be beneficial for both Bitcoin and Coinbase.
There can only ever be 21 million Bitcoin in circulation and no more Bitcoins will be created after that. This will enhance Bitcoin scarcity and value. As such the current drop in Bitcoin and Coinbase would be a great time to go bargain hunting.
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Bitcoin is just at the bottom of its range. Look at monthly chart. It will simply stay in this range until it breaks out after the halving.
Gold and Silver will outperform bitcoin until the world problems get stable again.