Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
In a massive price rally, Bitcoin bulls pushed the cryptocurrency above $10,700 level making new highs for this year. Crypto experts think Facebook’s Libra launch has helped to drive this rally.
Today, June 22, Bitcoin price has crossed its important barrier and hit the new high for 2019. Early today, the Bitcoin bulls raged in pushing the cryptocurrency above $10000. Soon after Bitcoin crossed these levels, the bullish sentiment gathered more steam to push the world’s largest cryptocurrency all the way above $10,700 levels.
Note that it is for the first time since March 2018 that Bitcoin is trading above $10,000 levels. This could have a sizeable impact on the investor-sentiment that could lead to a massive rally ahead. With today’s price surge Bitcoin’s year-to-date returns currently stand at 200%.
At the press time, Bitcoin is trading at $10,712 with a market cap of $190 billion. Moreover, the daily trading volumes have crossed $24 billion showing strong demand. Tyler Winklevoss, the co-founder of Gemini crypto exchange, tweeted hinting at further fireworks.
ATTENTION: Psychological barrier broken…buckle up! ??
— Tyler Winklevoss (@tylerwinklevoss) June 21, 2019
Also, popular crypto trader Peter Brandt explains the strong parabolic chart patterns for Bitcoin in the long run.
Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2010. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other. pic.twitter.com/wE4j3riMgI
— Peter Brandt (@PeterLBrandt) June 22, 2019
“Bitcoin adoption has been rising at a rapid pace over the last two years and it seems the price is finally catching up.
Now that $10k has been breached, the only major resistance level remaining is the all time high of $20k.”
Also, many analysts across the cryptosphere are attributing the Bitcoin price rally to Facebook’s launch of Libra. With it agrees Greenspan:
“Crypto investors are certainly excited about the possibility of large institutional players entering the market. Fidelity, Bakkt, the NASDAQ, and even Facebook all have plans to enter shortly.”
The Impact of Facebook’s Libra Launch
On the other hand, there’s no doubt to it that Facebook’s launch of the Libra currency has got the heads rolling in the global financial space. However, financial pundits seem to be divided on their views about Libra’s impact on Bitcoin. Jasper Lawler, head of research with London Capital Group, said:
“Libra will expose 2 billion Facebook users to crypto. Because of its huge network of over 2 billion users, Facebook products cast a wide net. Libra will breed familiarity of cryptos to a much wider audience. Two billion people will now be much more open to Bitcoin and other altcoins.”
Speaking to Forbes, David Martin, chief investment officer at U.S. asset manager Blockforce Capital, said:
“This rally we are witnessing can be largely attributed to Facebook releasing the details of the long-awaited Libra cryptocurrency. When Facebook released the whitepaper explaining the project on Tuesday, major channels picked up the story and ran with it. All this exposure has led to bitcoin entering the mainstream news discussion as well.”
On the other hand, Paul Markham, global equity portfolio manager at Newton Investment Management, still holds some skepticism for Bitcoin. He says:
“The appeal of bitcoin is still too limited for the average investor. It’s very risky and the volatility has been extreme.”
Retail And Institutional Participation
Experts from the financial space have a mixed bag of views about retail and institutional participation in the crypto space. Speaking to CryptoBriefing, George McDonaugh, CEO of KR1, said that there’s a significant inflow of fresh capital in the crypto market. He said:
“It’s clear that during the 54-week bear market, money didn’t leave the asset behind; it just sat on the sidelines waiting to get back in.”
On the other hand, David Thomas, Director and co-founder of GlobalBlock, thinks that whales are still dominating the crypto space. Thomas added:
“[R]etail is coming back in and getting excited again, but not necessarily to the levels that we would all believe,” he said. “Fundamentally, these price moves are still bossed by the big holders.”