The price of Bitcoin rushed past the previous year-high record earlier today, and is currently mooning towards $10,000. This comes as investors are facing FOMO (fear of missing out) as Facebook recently unveiled its own crypto stablecoin.
Bitcoin rallies towards $10,000
At the time of writing, Bitcoin is trading at $9,812 and the cryptocurrency market cap has surpassed $300 billion. This comes after Bitcoin’s price has increased massively during the past few hours. As such, Bitcoin is inching closer to the psychologically significant $10,000 barrier.
Commenters have previously forecasted that a $10,000 breakthrough for Bitcoin could reinvigorate the cryptocurrency market. One of these has been Tom Lee, the notorious Bitcoin bull.
Lee recently issued a note to clients of Fundstrat Global Advisors, the independent financial research outlet. Moreover, Lee also issued a tweet highlighting this:
“In most markets, a ‘new high’ is needed to confirm a breakout. But with (Bitcoin), when it trades at a price seen only 3% of its history, this has confirmed a new high imminent. This makes crypto different.”
This rally towards $10,000 cements the bullish crypto trend seen over the past few months. Although it is still unclear whether or not this will be the start of the next crypto bull run, breaking $10,000 will undoubtedly be a positive sign.
What’s more, Bitcoin’s recent surge has brought the wider cryptocurrency market along with it. Although Bitcoin’s intraday performance has far surpassed that of most other major cryptos, its rise has had ripple effects.
Could FOMO after Facebook’s Libra unveil be driving this rally?
It is unclear as to what is the exact reason for Bitcoin’s recent surge. However, some credit Facebook’s recent unveiling of Project Libra with sparking this price increase. What’s more, these opinions seem undeterred with the recent regulatory pushback faced by Project Libra.
Some commenters have suggested that Project Libra, spearheaded by Facebook, might “do the dirty work” for other cryptos. As such, Facebook may be able to lobby for increased cryptocurrency adoption and crypto-friendly regulations.
This could, in turn, pave the way for increased adoption of other cryptocurrencies. Some industry observers have attributed the recent rise in the price of Bitcoin – and other cryptocurrencies – with Facebook’s entry into the crypto sector.
Although Libra will only be a stablecoin – with some calling it a cryptocurrency “in name only” – it could nonetheless boost general interest in cryptocurrencies. Whether this anticipation is the main reason for Bitcoin’s recent rally towards $10,000 is unclear, but it could certainly play a part.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.