Bitcoin Market Cap Hits $100bn As Facebook Reveals Crypto Plans
According to Some analysts suggestion, the movement was caused by increasing uncertainty surrounding Tether.
Over the past 24 hrs, Cryptocurrency has risen with total capitalization rising nearly $10bn. Cryptocurrency markets are bright green now. This is the highest level since the ‘Bitcoin boom‘ started at the beginning of April.
Though most of the cryptocurrencies are rising, but Bitcoin (BTC) experienced one of the highest gains. BTC prices rose above $5,800 at the time of this publication, nearly $500 higher from the same time yesterday.
Bitcoin total value has moved past the $100bn boundary for the first time since November as well as moving beyond $100bn boundary as the Bitcoin Cash fork caused a market-wide downturn.
Bitcoin appears to be the main driver behind the rally as the market goes up. BTC dominance – the share of the market cap is now 55%, the highest level for the year, made up by Bitcoin –
The total value of the market is currently just above $186bn. If the present trend continues, it will be definitely be on the move to the highest level for 2019.
Facebook has started developing its own cryptocurrency payments system from some source in the social media.. According to a report seen by the Wall Street journal “Project Libra’ will make a new Facebook stablecoin the centre of a new network, according to a report seen by Wall Street Journal. The tech giant , Facebook is believed to be in good talks with Mastercard and Visa, and might use the token as incentive to attract users to interact with ads on its social media platform.
Some analysts as well believed that the news might have sparked the bullish move in the markets. Tara Annison who is the Technical Product Manager of PR9 Network, an institutional Cryptocurrency trading and settlement platform in an email to cryptocurrency briefing, believed that it represented a “strong display of confidence in the industry”.
This is just the beginning as established industries are adopting Blockchain. Annison argued that it might also represent a crucial moment to express how industry players are perceived in relation to Blockchain , “It’s not just start-ups and crypto-based businesses that are interested in blockchain technology and the power of cryptocurrency, but established businesses such as Facebook too,” she wrote.
Facebook’s increasing involvement in the space will give room for more investors, it represented validation for many investors as well as increasing their confidence in Cryptocurrency, this was stated by Lian Wilson, an advisor at NEM Ventures, the venture capital arm for the NEM , XEM project . “Facebook’s Project Libra, combined with its recent pivot to privacy, catalysed the increasing bullish view that crypto is entering the mainstream,” he wrote in an email.
Other causes at play
But Mati Greenspan, senior market analyst at eToro is skeptical that yesterday’s Facebook news acted as a catalyst to the bullish view or has anything to do with it. “As far as I know, Facebook is working on something separate to the current crypto market,” he said.
Greenspan believes that it’s more of news surrounding the Tether( USD) Stable coin and Bitfinex and likely because of sentiments of “general bullishness:
Annison also explained that today’s Bitcoin rally reflected part of a longstanding trend.“It is good note that Q2 is generally a better quarter for bitcoin, after the lows that Q1 brings, and we’re now also around the one year mark away from the next halving, which may mean people start to accumulate,” she said.
If, as Greenspan suggests, today’s market move was sparked or pushed upwards by concerns surrounding Tether, then it t would be interesting to see whether Facebook can do same by developing a token which holds a stable store of value, said Annison.
She stated that “The success of the various stablecoin projects to date is still questionable,” “so it will be interesting to see how their approach develops and whether they can produce both a successful network and stable-priced cryptocurrency.” She said
Credit : Wikipedia, wall street journal, crytotvplus
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