Over the weekend, leading cryptocurrency Bitcoin surpassed the $9,000 price point, a key threshold that brings the digital coin's gains for the year above 150%. The high point over the weekend, per a report by CoinDesk, was $9,391 on Sunday, marking a 13-month high. At least three important news items in the cryptocurrency space may have contributed to Bitcoin's recent gains: Facebook (FB) is planning to announce its own stablecoin this week, while major international cryptocurrency Binance Coin (BNB) revealed that it would ban U.S. users in recent days, and a new interdealer broker will sell Bitcoin futures.
News That Could Be Fueling Bitcoin's Surge
- Facebook is expected to unveil its own cryptocurrency this week.
- Binance Coin, the largest crypto by trading volume, barred U.S. users.
- UK-based TP ICAP will begin to sell Bitcoin financial derivatives.
Source: CoinDesk, Coin Telegraph
Multiple Reasons to Turn to Bitcoin
Besides Bitcoin's major gains, the biggest news in the broader cryptocurrency world in recent weeks has likely centered around Facebook. The social media titan is expected to reveal details about its own stablecoin this week, with a launch to come in 2020. As the largest social media company to join the cryptocurrency craze, Facebook has the potential to engage an enormous user base all around the world with its coin, which some sources say will be called GlobalCoin. The project is backed by more than a dozen leading companies across multiple industries. Per CoinDesk, Blockchain Capital General Partner Spencer Bogart suggests that Facebook's move is a "bullish catalyst" for Bitcoin because it "eases the biggest friction in acquiring digital assets."
CoinTelegraph reports that UK-based interdealer broker TP ICAP is slated to begin to sell Bitcoin financial derivatives. This is another piece of big news for the cryptocurrency space, particularly after the Chicago Board Options Exchange (CBOE) revealed it would not renew its bitcoin futures offerings going forward.
What It Means
Bitcoin's performance so far in 2019 has been exceptional, and it has certainly rekindled investor interest in the leading cryptocurrency by market cap. However, it's important to keep in mind that, even at its recent highs, Bitcoin has only approached half of its highest historical value, achieved at the end of 2017 and into the beginning of 2018. Bullish cryptocurrency enthusiasts continue to expect big gains from the coin, but there is still a huge amount of ground to cover to reach that threshold.
What Comes Next
Almost two years after the cryptocurrency bubble reached its zenith, investors expect that even the biggest digital coins will be highly volatile. There's no guarantee that Bitcoin's impressive gains will continue into the future. However, if Facebook is able to ignite global interest in the digital currency space among a new crop of billions of potential investors, this could spell continued success for Bitcoin and other digital currencies as well.