The volatile cryptocurrency Bitcoin has shooked everyone out of surprise by the price surge. On Monday, the cryptocurrency has hit the mark of $11,000 which is the highest in 17 months. The growth of the Bitcoin has stemmed by 170% since the year.
According to Coin Desk’s Bitcoin Index, the digital coin has hit $11,307.69 around 5:30 am HK/SIN Monday. It is the highest since March 2018. In 2017, Bitcoin had hit the milestone of $19,000 and at the same time, the talks of Bitcoin as a bubble was clouding the market. At the start of this year, the Bitcoin was trading at the value of $3,000 low price. But since February, Bitcoin has been marching higher again.
The boost of the price is speculated as to be the introduction of Facebook’s Libra cryptocurrency. “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,” Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups told CNBC.
Behind the cryptocurrency, the basic technology lies blockchain which enables high-end secure transactions. Following the launch of Libra, many politicians and central bankers are keeping close to the development. The rise of the Bitcoin has also helped other digital coins such as Ehterum that has doubled this year.
Earlier Bitcoin has faced accusations for manipulating the market. “Manipulation could very well be behind the recent market moves. “To act like bitcoin and cryptocurrency prices are purely driven by supply and demand of little traders … ignores the specific mechanics of this marketplace,” said John Griffin, a finance professor at the University of Texas at Austin said.
Facebook has partnered with tech giants such as Uber, Spotify, etc to use Libra for their payments and built Calibra as a digital wallet for Libra.