Crypto Currency Markets: Bitcoin Rallies Upward
Bitcoin continued its push during Wednesday’s Asian trading session, and it has now gained around 15% in the past week.
The most volatile cryptocurrency was 2%, which went up to $12,942.7, as of writing. Bitcoin touched as high as $13,088 during day trades.
The price gain of the crypto asset occurred after Facebook Libra’s Co-Creator David Marcus wrote the U.S. House Financial Services Committee a letter.
“I want to give you my personal assurance that we are committed to taking the time to do this right,” Marcus wrote. The committee ahead of the scheduled hearings for Facebook’s proposed launch of Libra, its addition to the crypto currency markets.
Before this, last month, Chairwoman of the Committee Maxine Waters wrote a statement about her concerns on Libra.
In her statement, she requested the social network giant to “agree to a moratorium on any movement forward” on the said crypto project until “Congress and regulators have the opportunity to examine these issues and take action.”
Bitcoin surged from $7,700 last month to over $13,000 this week, gaining almost double its value within just a month.
Elsewhere in the crypto currency market, Ethereum decreased 1.5%, XRP slipped 2.9%, while Litecoin dropped 3.3%.
Current institutional demand could prove to be an essential factor for the asset’s next rally upward, according to Edward Moya. He is the Chief Market Strategist at a forex company in New York.
“Bitcoin looks like it could be coiling for a big breakout as institutional interest for blockchain technology shows no signs of slowing down,” Moya added.
He also described the ongoing rally of the crypto as “bubble-like gains” and that Bitcoin has overcome the obstacles that hindered its growth.
Bitcoin Charges Through as Libra Sorts its Issues in the Background
This week, Bitcoin bounced back from a drop of under the $10,000 mark at the beginning of the month.
The digital currency made robust gains, and it seems to have lifted the crypto currency market with it—most prominently, the likes of Ethereum, XRP, and Litecoin.
Prices of the most volatile crypto-asset soared back in its flight path towards a year-to-date high within just 24 hours. Bitcoin added around 10% and hit $12,880 in the previous day.
Last month, Bitcoin hit $13,880, its highest value this year, as Facebook’s Libra bolstered investors’ interest and demand for the digital currency.
According to Naeem Aslam, a chief market analyst, Facebook’s Libra helps legitimize Bitcoin. He also said that when Amazon and other major tech players consider taking over cryptocurrencies, he wouldn’t be surprised.
However, there was no confirmation from said key players such as Amazon about future digital currency plans.
But Facebook’s cryptocurrency proposal remains controversial. As the social network giant is still subject to doubts regarding privacy issues, and most notably, its influence on elections worldwide over the past years, such uncertainties render Libra as questionable.
Not to mention the easy spread of misleading news and articles on the social media platform. It’s not easy among investors to just get themselves involved outright.
This may be why Congress has its gazes affixed on the crypto project. Both the Senate Banking Committee and the House Financial Services Committee have called for a hearing regarding the said proposal.
As a result, the ongoing rally of Bitcoin is left in the hands of both hope and doubt. While the uncertainty regarding Libra’s capabilities strengthens bearish tones, a continuous charge from Bitcoin proves investors’ belief in the asset, making the Bitcoin more volatile.
However, there is still much speculation on and what the future of the crypto currency market holds.
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