The price of Bitcoin has surged to a new one-year high following news of Facebook’s upcoming crypto project. This, in conjunction with a flurry of other bullish crypto news, may continue to drive crypto prices even higher.
Bitcoin reaches a new one-year high amid a series of bullish news
At the time of writing, Bitcoin is trading at a price of just above $9,150. A recent Bloomberg report is highlighting how this represents a new one-year high for Bitcoin. This is widely believed to be driven by suspense building for the imminent reveal of Facebook’s crypto project. Although not a Bitcoin ATH, the price of Bitcoin has gained more than $5,000 since the start of the year.
What’s more, the price of Bitcoin is a key indicator to the wellbeing of the crypto market as a whole. Although some crypto supporters would like to downplay the importance of Bitcoin, (correctly) noting that there are many other cryptocurrencies and blockchain projects out there, Bitcoin still dominates the crypto market share.
As such, the climb in Bitcoin prices means that the crypto markets as a whole have surged to over $285 billion. The past few months’ steady increases have seen the total crypto market capitalization nearly triple, from roughly $100 billion to its current value.
According to the Bloomberg article, Facebook’s looming crypto project announcement could play a large part in these latest price increases. Specifically, Facebook is rumored to reveal the white paper for its crypto project “Libra” tomorrow, on June 18th.
Nevertheless, the Bloomberg report also suggests that financial uncertainty could play a large part in this. Brett McGonegal, CEO of Capital Link International, noted this in an interview with Bloomberg TV.
“The simple fact is, in a time when people are looking for some sort of safe haven or some hedge, money has found its way to Bitcoin.”
Are institutional investors finally warming to crypto adoption?
In addition to the macroeconomic uncertainty, which could drive investors and consumers alike towards cryptocurrencies, there are more potential triggers for a continued Bitcoin rally. Another Bloomberg report reveals that JPMorgan Chase now believe that institutional investors are “more sincere” about Bitcoin than they were in 2019.
Consequently, it implies that the institutional sector is now becoming increasingly ready for crypto adoption. What’s more, the same article also implies that actors understate the “importance of Bitcoin futures”.
Nonetheless, the many reports surrounding Facebook’s crypto project is likely the main driver for the recent surge in crypto prices. Furthermore, reports allege that Facebook has partnered with firms such as Uber, PayPal, Mastercard and Visa for the crypto project.
Add to this the recent news that Coinbase launched its crypto debit card in six more European countries, that the ICO market could see a rapid revival, and that Coinbase Custody’s managed assets could “soon” hit $2 billion and its understandable why Bitcoin has now reached a one-year high.
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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.