Market Round Up: Coinbase Crushing It 💥 BOJ Holds Rates 👀
1. Coinbase Crushing It
Despite Bitcoin’s spectacular 65% drop in value since its peak in December 2017, cryptocurrency exchange, Coinbase, has managed to appreciate significantly in value.
The San Francisco-based start up announced a jaw-dropping $300 million round of fundraising that pushed its August 2017 valuation up from $1.6 billion to $8 billion (Wow!). Even though much of the 2017 crypto trading hype has faded, Coinbase’s President and COO, Asiff Hirji, remains confident about the future of the crypto industry.
He announced that Coinbase intends on using this new capital to “accelerate the adoption of cryptocurrencies and digital assets,” as he made their plans to target insititutional investors clear – banks beware!
Its latest joint venture with crypto partner Unicorn has come with the first U.S. dollar-backed crypto called “Stable Coin” that is supposed to bridge the gap between fiat money and crypto-currency. Innovative stuff!
2. BOJ Holds Rates
Yesterday the Bank of Japan (BOJ) decided, as was widely expected, to hold rates at their current levels for an extended period when the rest of the world pushes to decrease crisis-era (2008) stimulus packages. What does this mean?
It means that Japan believes that its growth and inflation are under control and on track, and that it is content to still use the same instruments employed after the financial crisis to grow its economy, but how long can this be left unchecked?
The Japanese Yen weakened against the dollar by 0.5% and its benchmark index, the Topix fell 0.8% with banks suffering the most as markets adjusted to the news.
Analysts suggest that the BOJ has bought itself another 6-9 months before markets will begin to anticipate further changes to the program, but for now they can breathe – tick tock, Japan!