Over a week ago, Bitcoin was trading at $7,650 and was rebounding off $8,000 for the second time in a matter of days. Now, the largest cryptocurrency in the market has marked a 13-month high and is trading for the third consecutive day over $9,000. So, what happened over the past week to move the prices by that margin?
Well for starters, everyone’s favorite Satoshi Nakamoto, Craig S Wright, was handed another court order by a US district court to prove who he thinks he is, or else, possibly, be charged. Or was it because of a little known company called Facebook releasing their own cryptocurrency with backers like Visa, MasterCard, Uber, PayPal, among others?
We think it’s the latter.
Project Libra, the hotly-anticipated digital asset by Facebook, was unveiled on Tuesday, complete with its own blockchain, wallet, and participants paying a $10 million entry fee to partake in the project’s internal governance. Many have described Libra as being revolutionary for the world of FinTech and an important channel for the remittance and retail payments industry. Some have even suggested that it could be “bullish for Bitcoin.”
Given the rapid BTC price rally and pertinent Libra developments in the ensuing week, some argue that the $9,000 ascendance would not have materialized without Facebook. Bitcoin well and truly broke the $8,000 mark on June 13, with the announcement nearing. A steeper price incline was seen on June 15 when, in one day alone, the price surged from $8,200 to $8,800 as news of the “Libra Consortium” broke out.
On June 16, the $9,000 mark was officially broken for the first time since May 2018, sustaining itself well into June 18, the official day of the Libra launch. Correction was expected as Libra’s formal launch saw sentiments high, but since this was a mere tickle for the industry ahead of any formal launch in 2020, the market was expected to duck back down below $9,000. However, around 24-hours after the announcement, the price continues to hover above $9,100.
To add to the above, the sentiment around Bitcoin is higher than its ever been since May, when the price was around $8,000. As detailed by The Tie, the cryptocurrency market’s response to Project Libra has been “positive,” despite the king coin falling against the US Dollar by 0.75%. Social media chatter on the rival platform, Twitter, has also seen a surge, with the Bitcoin tweet volume rallying to its highest point yet and mentions of Bitcoin with “Libra,” “#Libra,” or “Facebook,” accounting for over 7,000 tweets, with a vast majority of them positive.
Libra is a digital asset meant to transact via a blockchain and be stored in an online wallet, confirming to the core pillars of digital assets on one end. On the other, it is centralized, backed by a basket of fiat currencies and supported by several payment players which ardent crypto-proponents would like to replace.
Whichever way you look at it, Facebook is still bringing in a massive user base into the world of digital assets, allowing them the channel to engage in online payments and providing them their own wallets, all on a blockchain. Hence, it bears no surprise that Bitcoin is responding positively.