Bitcoin Holds Steady
The rally in Bitcoin continued into the end of June with the largest cryptocurrency pushing higher to trade at highs of nearly $14,000. Despite a pullback into July, Bitcoin has since continued to see strength and is currently trying to hold above the psychological $10,000 level.
The dominance of Bitcoin over the rest of the crypto market has been seen with its value now trading at 70% of the overall market. This is double the levels of early 2018 and highlights that institutional money has been flowing into the crypto space and this has seen an underperformance in many altcoins. Another reason for Bitcoin’s performance is the rally in gold. Bitcoin is seen by many as “digital gold” and as gold and silver are seeing buyers emerge due to cracks in the financial system, so too does Bitcoin. Central banks are slashing rates and consider more money printing measures to combat a real slowdown in global trade. This has many investors worried and they are diversifying money away from the high prices in stocks.
How will Libra Change the Game?
Last year’s rumours of a Facebook cryptocurrency emerged through their hiring of many blockchain roles through their careers portal. The rumours have been replaced with an official announcement and a release date expected around April 2020.
The crypto market has always anticipated a big-name corporation joining the digital money revolution and the arrival of Facebook, with its 2 billion monthly active users, could really bring a new wave of investors to crypto. Facebook’s offering is not fully known yet we have seen from screenshots that they will allow the sending of blockchain money through the WhatsApp platform. This has the potential to alter the fabric of the current finance system and could cause some upheaval for corporations that are not prepared.
Can BTC Stay Above $10,000?
Bitcoin has remained strong after the 2019 rally to prove many doubters wrong. The next path will be dictated by the ability to hold above the $10,000 level but there are many risks out there that could stimulate further gains, whilst the arrival of Libra coin is something to watch closely in the months ahead to see how it will be used on the social media platform.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.