Home / Business / Coinbase: The crypto price has fallen significantly this year as it did in 2018.

Coinbase: The crypto price has fallen significantly this year as it did in 2018.

Coinbase, an 8-year-old privately held San Francisco-based startup that is trading platform Bitcoin and other cryptocurrencies on Tuesday evening, announced financial results for 2018 and said: Have foreseen a variety of situations This year’s market includes a sharp drop in prices.

Bitcoin’s price has soared over the past six months from $ 10,600 to more than $ 57,000 per Bitcoin, as companies like Tesla, PayPal and Square have focused on buying a reserve currency and enabling customers to transact in cryptocurrencies.

Coinebase, which makes money from the volumes of people transacting on its platform to buy and sell currency, had 6.1

million transacting users or MTU in the three months ending March.

In the forecasts for this year “Due to the inherent unpredictability of our business. […] We are preparing many possible scenarios for the whole year 2021, ”the company said.

The “high” scenario has steadily increased the overall market capitalization of the crypto, pushing Coinbase’s MTU to 7 million.

The “middle” situation assumes that the crypto market cap is constant, “the company said, and” low to moderate volatility. In the crypto price, that might cut MTU down to 5.5 million.

The “low” scenario will see “a significant drop in the crypto market capitalization, similar to the 2018 decline,” the company said, “and afterward, low volatility in crypto asset prices.

Bitcoin’s price in 2018 dropped from a peak of over $ 19,000 per Bitcoin to below $ 4,000.

“In this scenario, we assume that the MTU will decline in a consistent manner and end 2021 at a similar level to Q4 2020.”

For its own results, the rise in crypto prices is a boon to corporate volumes.Coinbase had $ 335 billion in trading volume on the platform in the March quarter, generating $ 1.8 billion in revenue.The company expects net income of 700 million. Up to $ 800 million from that activity

Coinbase has received $ 539 million in venture capital financing since 2015 from companies including AH Capital Management LLC, Manhattan Venture Partners, Y Combinator and Initialized Capital Management.

Source link