The second largest cryptocurrency exchange in the world, Coinbase, is set to take ownership of the nine-year-old Turkish cryptocurrency exchange, BTC Turk, by May.
Coinbase has been eyeing the opportunity for some time, and after negotiations, the deal was finalized at $ 3,2 billion, down from $ 5 billion.
The exchange, which boasts over 4,5 million users, was the first cryptocurrency exchange in Turkey when it launched in 2013 and currently works with seven large banks in the country, allowing money to be transferred through them.
Last year, the exchange conducted transactions worth 1,7 trillion Turkish lira, which translates to around 116 billion dollars. The acquisition of BTC Turk would open the doors for Coinbase to expand into the country, which has a significant crypto presence there.
As reported by crypto-currency, the country last year was the sixth largest country when it comes to profitability, with Investors who have earned over $ 4,5 billion in cryptocurrency profits.
But acquisitions aren't the only way Coinbase is aiming for growth, as just recently, the company launched the beta version of its NFT marketplace and is preparing for an official launch in the near future. This shows Coinbase's desire to become the largest cryptocurrency exchange on the planet.
The cryptocurrency market today
While the deal will be completed in May, writing it now makes sense as the market appears to be on a slight recovery. But on a larger scale, it is absolutely unsure which direction it might take.
The market has struggled with around $ 2 trillion since the first week of January, with the level reversing the trend just as it is about to be breached. An attempt earlier this month failed again, and now, as the cryptocurrency market approaches $ 2 trillion once again, the odds are in its favor.
The last time $ 2 trillion was surpassed, the market was already quite overbought and ended up overheating. From the cooling though, the rally appears to be more sustainable as, at the moment, the market is building to be bullish once again without being overbought. Thus, the acquisition could prove to be profitable if it ends around the time when the market is also bullish.