Bitcoin has continued its rally this last year and has surged to over $11,000 ($11,430 to be exact) this week, the highest level in 15 months. It is thought that the recent increase in the price of Bitcoin was driven by Facebook’s recent announcement of their new Cryptocurrency, Libra.
In a recent tweet from Squawk news, Joe Squawk states “The introduction of Libra illustrated the real benefits of bitcoin that was absent from Libra.” Libra, being a coin that can be accessed worldwide to over two billion users, allows accessibility to transfer money and purchase goods without any fees. This is quite attractive to these users and acts as a catalyst to Bitcoin’s recent surge. Bitcoin has been on the rise by its own standards in recent months, but with the announcement of the launch of Libra, Bitcoins popularity has again skyrocketed.
Libra was founded by Facebook along with 28 other global brands from Uber to PayPal. This is likely to have signalled to the markets that the underlying blockchain technology that underpins Bitcoin, has mainstream applications and has lead to an increase in institutional interest. It has also been helped by a depreciation in the value of fiat currencies that have inevitably given Bitcoin the room to grow and reach the 15 month high they are at today.
Veteran trader Peter Brandt describes this surge as “Bitcoin taking aim at $100,000 and a market like no other.” Bitcoin to this day still remains hard to predict, but as Peter said, it is an incomparable market and is on track to $20,000.
As the graph above depicts the value of Bitcoin over the last two years, the most recent surge is due to the increased demand from investors, unlike the bull market which saw an unprecedented surge in 2017. With the help of Libra, businesses are forced to pay more attention to Cryptocurrency which, consequently, is bringing more attraction to Bitcoin. Additionally, networking transaction fees are much lower today than they were in 2017. Daily on-chain transactions, block size, volume, and other metrics can confirm that people are using bitcoin more than ever before.
Bitcoin, having been around for over 10 years, has a substantial network and is more secure than ever before. Having a secure network, interest from businesses all over the world, and the additional help of Facebook’s Libra, the surge only makes sense.
Will Bitcoin finally realise its hype and challenge Libra as a mainstream currency alternative?