According to Coinbase’s Q2 2021 earnings report, the cryptocurrency market is reportedly showing signs of maturity.
That is claimed by GlobalBlock’s Sales Trader Marcus Sotiriou, who points out that retail trading volume increased more than tenfold in the quarter ended June 30, compared to the same quarter last year, from $11 billion to $145 billion. Even better has been the trading volume of institutional investors, which has grown twenty times in one year, from 17 billion in 2020 to 345 billion this year.
Therefore, Sotiriou points out, although the cryptocurrency market may still appear to be heavily geared towards retail investors, in fact, Coinbase’s report clearly shows how institutions are beginning to dominate it.
Coinbase also announced a profit of more than $1.6 billion, almost double the previous quarter’s figure, with revenues of $2 billion higher than the $1.88 billion expected by analysts.
It’s not all that surprising, therefore, that the world-famous microchip manufacturer Intel reportedly invested $800,000 in the company’s stock.
Signs of cryptocurrency market maturity beyond Coinbase
Even outside Coinbase, further signs of greater maturity in the cryptocurrency market have appeared.
For example, private investment firm Neuburger Berman is adding bitcoin futures to its strategic commodity fund as a strategic exposure to the price of BTC to hedge against inflation risks, as bitcoin “is scarce by definition.”
In addition, Elon Musk and Mark Cuban have again endorsed Dogecoin as the “strongest” cryptocurrency to pay for goods and services.
Overall, for good measure, several indicators suggest the cryptocurrency market had changed from what it was even just last year when signs of maturity were scarce and rare. Instead, the now growing interest from prominent investors and big companies shows a change in trend and a likely substantial consolidation of the very foundations of this still so young and peculiar market.
Also, according to the Sales Trader at GlobalBlock, a UK-based digital asset broker, the bitcoin price trend has recently reversed upward. Still, a pullback would be expected before the growth can continue. Sotiriou points out that at the same time as the price rise, there has been a drop in volumes, and a bearish divergence has occurred in the RSI indicator on the daily time frame. In addition, a rising wedge pattern would be forming, which has a high probability of breaking to the downside.
