The public is attributing Bitcoin’s success to Facebook and the newly announced Libra token
Bitcoin charts continue to display upward medium and long term price momentum for Bitcoin. Last week, as Bitcoin prices soar above $13,000, the potential to near all-time highs of close to $20,000 within the 2019 year seems feasible. In spite of recent pull-backs below $11,000, the market remains buoyant.
Cryptocurrency investors and experts predict these scenarios through both technical and fundamental analysis of Bitcoin charts. Since the beginning of May, forecasts based on this sort of analysis have been remarkably accurate. This profitability analysis from Monfex, for example, posted on TradingView May 13, 2019, has been proven accurate over the past two weeks.
In the weeks that followed the release of that prediction, Monfex provided additional investment analysis and predictions via its TradingView profile. This information is based on strong indicators in the charts predicting positive future movement for Bitcoin.
However, the seemingly coincidental correlation between Bitcoin’s price surge and Facebook’s announcement of Libra, its new stablecoin, has caught the attention of some in the cryptocurrency world.
Libra and Bitcoin: a match made in heaven?
The news from Facebook hit the blockchain community at an interesting time. After enduring a bear market that lingered over a year, Bitcoin prices were already hovering above $9K when the Libra white paper was released. This was more than double Bitcoin’s bear market lows of under $4K, a price that held strong through a trough lasting nearly five months.
The day after the Libra news hit, Bitcoin began climbing. By June 22, 2019, prices rose above $11K. June 26, 2019 saw Bitcoin surpassed $13K.
While prices have dropped over 19 percent, and sit around $11K as of July 8’th, 2019, market movement of this scale is a pretty big deal.
Yet, is a direct correlation between Bitcoin prices and the Libra news warranted? Does a cryptocurrency token released by notoriously untrustworthy social media platform have that much power over the blockchain community? Was this the result of Libra, or did prices rise due to pre-existing factors?
In a June 21, 2019 Medium post, Alex Sovpel of Monfex provided an analysis of the Libra Association white paper.
Contrary to the opinion of many Libra fans, Bitcoin was on the upswing well before June 18. Bitcoin prices started moving up in April, 2019. The 2018 bear market brought prices below $4,000 USD. April 3, 2019 saw the price finally reach $5,000 USD. From there, prices have continued to rise.
Driving the Bitcoin bus
These fundamentals indicate continued strength and relevancy for Bitcoin. As a result, increased demand for Bitcoin can be expected.
Regardless of the strength of its influence on Bitcoin, the recent attention on the Libra project is valid and bound to continue. For the first time in the 11 year history of cryptocurrency, a platform with a nearly limitless existing customer base is putting its full weight behind a blockchain project. As the Monfex team pointed out, Bitcoin is in a position of strength relative to the market.
Not only that, Facebook Marketplace is an eCommerce system that will directly lend itself to the use of the Libra token.
What the future holds?
For now, the biggest question is, at what point should we buy in? Does Facebook’s announcement have short term implications? According to Monfex and others who have analyzed the Libra token announcement and its overall potential, the time for fiat investors to begin the transition to integrating cryptocurrency into their portfolio is now.
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