Bitcoin jumped to an 18-month high on Wednesday as investors sought security in alternative investments amidst geopolitical tensions, and prospects hoped the Facebook Inc. Libra could push cryptocurrencies to mainstream.
The world’s largest cryptocurrency has risen enormously since April and reached a high of $ 13,666.02 on the Bitstamp stock exchange on Wednesday, the highest level since January 2018.
So far this year, bitcoin has risen more than 260%, although it remains below its highest point of nearly $ 20,000 in December 2017.Bitcoin lasted 14.7% at $ 13,475.
Facebook to offer cryptocurrency
Investors returned to digital currencies after a blood deposit in 2018. Bitcoin has risen for eight consecutive days. And now Facebook has said it would offer its own cryptocurrency, the Libra currency, by the end of June 2020.
Analysts say Facebook’s announcement this month has revived interest in digital currencies, while investors looking for security have also raised the price of bitcoin.
“Cryptocurrency traders were revived by the launch of their own digital currency by Facebook and the momentum seems to be spurring new, new investors,” said Edward Moya, senior market analyst at online FX broker OANDA in New York.
“Bitcoin skeptics are careful in trying to stop this wave and can look for the next major $ 15,000 resistance level,” he added.
Way to diversify
Now that key central banks have kept interest rates close to lows, investors have been looking for ways to diversify their portfolios, including through Cryptocurrency, analysts say.
The Bitcoin CME futures volumes have also increased in recent days as investors look for ways to get hold of the currency through the derivatives market.
Traders who have access to both spot and futures markets have bought the spot and sold the futures, arbitrating the two prices, said Michael Moro, chief executive officer at Genesis Global Trading, who offers on-the-counter digital currency trading for institutional investors. investors.
150% increase since the beginning of May
The cryptocurrency has risen by 150% since the beginning of May, along with large increases in other smaller digital currencies such as Ethereum’s ether and Ripple’s XRP.
“It should be noted that this is a very different market today than in 2017,” said Moro.
“In 2017 there was an overwhelming number of ICO’s (initial offer of coins), which was very distracting. 2019 has less distraction, it is also another space because the CMES bitcoin futures product was only available in December 2017. “
ICO’s refer to a fundraising plan that bypasses banks and venture capital companies and where startups create their own tokens and sell them to the public.