Bitcoin has risen more than 5% since Wednesday, but the past few weeks have been marked by volatility and uncertainty. However, Important Announcement from Coinbase It brings new optimism to BTC holders keen to explore DeFi opportunities.
As of yesterday, Coinbase launched Coinbase Wrapped BTC (cbBTC), an ERC20 token backed 1:1 by Bitcoin (BTC) held by Coinbase. Initially, cbBTC will be supported on Base and Ethereum, with plans to expand to more chains.
This move allows Bitcoin holders to unlock new ways to interact with decentralized finance (DeFi), providing greater flexibility in using BTC across multiple platforms.
Coinbase’s launch of cbBTC represents another step forward in increasing economic freedom in the crypto space. BTC users now have more opportunities to leverage their assets while staying connected to the growing DeFi ecosystem.
Bitcoin is now available on the platform
Coinbase takes Pioneering step By connecting deep off-chain liquidity in Bitcoin to fast, low-cost financial networks on Base and Ethereum.
Through cbBTC, the company enables Bitcoin holders to use their assets across more chains, fostering a more interconnected financial ecosystem. Wrapped assets like cbBTC allow users to use Bitcoin in new ways, helping to bridge the gap between traditional Bitcoin holdings and decentralized finance (DeFi).
cbBTC eliminates the friction of transferring assets across chains by providing seamless compatibility with DeFi applications. This opens the door to new use cases such as providing Bitcoin as liquidity for DeFi protocols or as collateral for borrowing other crypto assets.
Upon launch, cbBTC will be available on decentralized exchanges (DEXs) such as airportCurve, Matcha, Uniswap, and lending platforms like Aave, Compound, Morpho, Moonwell, and Spark. Additionally, cbBTC can be used in real-world asset (RWA) protocols like Maple.
When Coinbase users send Bitcoin from their accounts to a Base or Ethereum address, their Bitcoin is automatically converted 1:1 to cbBTC. Similarly, when users receive cbBTC into their Coinbase accounts, it is converted back to BTC.
Importantly, cbBTC will not have a separate trading pair or order book on Coinbase but will be able to be traded through DEXs via Coinbase Wallet and potentially other third-party exchanges that choose to support it.
Bitcoin Price Tests Key Resistance Level
Bitcoin (BTC) is trading at $58,302, approaching higher prices. However, in order to make a sustainable upward move, it must break above the 4-hour exponential moving average (EMA) at $58,717 – just under 1% of the current level.
This EMA has been acting as a critical short-term resistance since early August, highlighting its importance. A successful break and hold above this EMA could signal a change in trend and could lead to Bitcoin testing the next important supply level around $61,500. This level will be a key resistance point to watch.
Conversely, if Bitcoin struggles to close above $60,000 in the coming days, a consolidation phase or even a deeper correction could be on the horizon. This scenario suggests that the current resistance is holding, and Bitcoin could face further challenges in its attempt to move higher. Traders and investors should monitor Bitcoin’s ability to overcome this resistance to gain insight into its near-term trajectory.
Featured image by Dall-E, chart by TradingView