Over this past weekend, Bitcoin surged passed the $10,000 mark, early on the 22nd, and then shortly afterwards hit its highest peak so far this year at $11,121.74 (15:00 GMT+1). In fact, the crypto-giant crossed the $11,000 mark twice over the weekend – the second time being on the 23rd of June at 22:30 GMT+1, and valued at $11,191.31 (Source: Coindesk – Bitcoin). This is especially promising ever since the crash in late 2017 that followed it’s all-time high on the 17 December 2017 at $19,783.06. This time however, experts speculate that the price is much more likely to set a new record, this time capping-off within the $60,000 to $100,000 range.
Why the surge?
As experts debate over the causes for the resurgence, two reasons seem to stand out as the most agreed upon notions: Libra and Organisations.
Libra – Facebook’s plan for money
With the recent release of Libra’s whitepaper by Facebook on Tuesday, experts suggest that the renewed interest in crypto-currencies – that had been at the centre of BTC’s bullish trend this year – was especially heightened. With all the media coverage on the unveiling of the plans, many more investors dipped their fingers into the world of crypto currency.
Organisations – a paradigm shift in “how we do business”
When bitcoin entered into the mainstream inn late 2017, it made its historic surge to nearly $20,000. This previous surge was driven by the public entering the playing field, however, according to Google Trends, it seems that there’s a clear disparity between the public investors’ interest and the BTC trend – this time, the the surge was purely due to the institutional-investor: the organisations. As of June 17, open interest at CME Group saw 5,311 contracts totalling 26,555 BTC, or approximately $246 million — dwarfing the volumes during the 2017 price peak. From this we can see that as more and more mainstream enterprises dip their hands into the cryptocurrency stream, bitcoin is in for a long run – especially as the retail-investors are yet to jump in.
“The [bitcoin] 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,” Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups told CNBC.
Furthermore, the Google Trend for “bitcoin” indicates that African countries are demonstrating the strongest public-driven interest right now, with Nigeria being at the top for the searches, then South Africa, then Ghana. These results are evidence of the increased participation of several major African countries in crypto as well as other blockchain-based technologies.
In conclusion, the recent rocketing of bitcoin is mainly an indicator of the currently rising interest and involvement of businesses and corporation in cryptocurrency. As we expect an incoming paradigm shift in how businesses operate, we sure to see another – far greater – boom in the bitcoin trend as it is soon to catch the public eye. What will be your next investment move?
JOIN OUR COMMUNITY