Cryptocurrency market Update: Coinbase acquires crypto broker Tagomi

• Coinbase will expand its institutional cryptocurrency services.
• The cryptocurrency market switched into a recovery mode with BTC above $9,000.

The US-based cryptocurrency exchange confirmed the acquisition of crypto-focused prime broker Tagomi. The cost of the deal is between $70 and $100 billion, The Block reports. Currently, it is one of the largest purchases made by Coinbase so far. 

The acquisition will allow Coinbase to develop the institutional business and provide cryptocurrency trading and storing services for the professionals. The deal was first announced in November. 

It was then reported that Tagomi was in talks with several other cryptocurrency exchanges, including Binance. An agreement between Coinbase and Tagomi requires regulatory approval. 

The parties expect to close the deal by the end of 2020. Tagomi service allows large investors to trade cryptocurrencies with favorable order execution prices. Pantera Capital, Digital Currency Group и Founders Fund are among other Tagomi investors.

Top-3 cryptocurrencies price updates

Bitcoin (BTC) tested $9,189 after a strong move above $9,000. The first digital coin settled above the critical resistance, however, the further resistance is limited. At the time of writing, BTC/USD is changing hands at $9,150, having gained 3.5% both on a day-to-day basis and since the beginning of Tuesday. The next major resistance comes at $9,300. 

Ethereum tested support of $200.00 during early Asian hours on Wednesday but managed to regain the ground and hit the intraday high above $207.00. At the time of writing, ETH/USD is changing hands at $206.50. The second-largest digital asset has gained 2.5% on a day-to-day basis and 2.8% since the start of the day. The price needs to gain ground above $210.00 to further improve the short-term technical picture and allow for the recovery to $215.00. The critical support is created by $200.00.

XRP/USD recovered from the intraday low of $0.1937 and tested critical resistance of $0.2000. However, the recovery attempt failed at the strong barrier. At the time of writing, XRP/USD is changing hands at $0.1980.