By the looks of Facebook’s new cryptocurrency, it wasn’t exactly surprising that its news has affected the entire market including Bitcoin. Bitcoin, for the first time in 15 months, has reached $11,000 mark. Not only did it reach $10K, it even surpassed $11K. To give you an idea of how far Bitcoin has already jumped, it has jumped by 170% this year.
In 2017, Bitcoin was able to hit its all-time high at near $20K. However, after a few months, it depreciated by almost 90%. But how is the current bull market different from the last time? In 2017, ICOs were involved why Bitcoin jumped all the way to near $20K. It was dubbed as ICO mania. With FOMO, many were quick to invest in ICOs regardless if it even has a practical application. But in 2018, things changed for the better. Many considered that the crypto industry “matured” in a way and regulators were looking to eliminate scams within the crypto industry.
What Makes Today’s Bull Run Different?
The US Securities and Exchange Commission even went after different companies that had their ICOs. Floyd Mayweather and DJ Khaled were even implicated in one ICO.
This time around, there are different elements involved. Right now, we get to see a demand from the institutional investors. In addition to this, the rules are changing. Regulatory changes facilitate adoption. For instance, in March, we saw Fidelity with its crypto custody and trade execution operation. In addition to this, we also have JP Morgan’s JP Coin. Though the JP Coin is actually a digital currency that is backed by the US dollar, it is still a 180-degree turn from the stand of JP Morgan when it comes to cryptocurrencies.
But more than anything, the recent jump on Bitcoin’s price is said to be because of Facebook’s Libra. According to Jehan Chu of Kenetic Capital, he said that: “The price surge is due to two major factors, one is an increasing consensus among the investment community that bitcoin is a legitimate store of value for the digital age, and two Facebook’s Libra cryptocurrency launch has forced every CEO to take crypto seriously”.
What’s Next for Bitcoin?
Is FOMO coming? What is next for Bitcoin? In May, Tom Lee mentioned that $10K marks the “real FOMO”. He believes that reaching $10K is “equivalent to achieving $3,200 in 2017”. But of course, let us not get too excited about Tom Lee’s predictions. He’s made wrong predictions in the past especially last year when he believed that Bitcoin was going to surpass its all-time high then.
If you are going to ask Ripple’s chief executive Brad Garlinghouse, he is actually making a “turnaround” on Bitcoin. He now puts a “long” position on Bitcoin. However, he believes that there will be no “one crypto to rule them all”.
Though we really don’t know what’s next for Bitcoin, there is a possibility that it could be going up. There are still a lot of things that the market should anticipate including the halvening. And also, given the fact that even the G7 wanted to take a closer look at Facebook’s Libra, it could mean that we are going to see cryptocurrencies back on the spotlight.