The Atlanta Journal-Constitution
Bitcoin enjoys Facebook bounce, topping $11,000
After months of “crypto winter,” bitcoin surged above $11,000 for the first time since March 2018, and experts think Facebook could be fueling the rise. Bitcoin soared as high as $11,304 Monday morning before dropping back a bit, to $10,885, according to market data from Coindesk. The world’s largest cryptocurrency is now up 170% for the year, suggesting investors have shed some of the skepticism that took hold after the bitcoin bubble burst in 2018 — its worst year on record.
The situation
The digital coin had peaked at $19,000 in December 2017 before tumbling, and was hovering around $3,400 in January.
Bitcoin has experienced a parabolic upswing since January, having nearly tripled its lowest-ever trading price in the past several months and prompting speculation that it could soon surpass the record high of $19,891.
“I think bitcoin is easily going to take out its all-time highs,” Tom Lee, research chief at Fundstrat Global Advisors, said last week on CNBC, saying the digital currency could potentially run as high as $40,000 if conditions
stay favorable.
Why it’s happening
“The strong resurgence in the Bitcoin price is mainly due to the renewed mainstream interest in cryptocurrencies and the technology that underlines it,” Naeem Aslam, chief market analyst at ThinkMarkets, wrote in a Forbes column. “Projects like Facebook’s Libra have provided a much-needed tail wind for this space.”
Last week, Facebook subsidiary Calibra announced plans for a digital currency, Libra, which it’s framing as an alternative to traditional financial services for people who lack access to banking. The digital currency will be accessible via a digital wallet in Messenger and WhatsApp and could launch as early as next year. It’s backed by 28 companies and nonprofits, including giants such as Mastercard and Uber.