On Monday, Bitcoin, a digital currency, rose above $11,000. The company owes the push in its price to Facebook, as the cryptocurrency sector got a huge boost from Facebook’s plan to launch its own digital unit Libra. Bitcoin reached $11,251.21, for the first time in the past 16 months.
“The strong resurgence in the bitcoin price is mainly due to the renewed mainstreaming interest in cryptocurrencies and the technology which underlines them,” Naeem Aslam, analyst at trading group ThinkMarkets, said.
“Projects like Facebook’s Libra have provided much needed tailwind for this space.”
Some have even termed this upside movement of the cryptocurrency as “crypto spring”, which is believed to be catalyzed by technical events. The TIE, crypto analytical provider, said that the ‘sentiment regarding Bitcoin is still widely positive’. The TIE wrote on Twitter, “The Libra Coin announcement played a massive role in driving Bitcoin to $10,000. After Facebook’s official partner list for Libra Coin was revealed by TheBlock__ on June 14th sentiment on Bitcoin almost immediately flipped positive leading significant upwards price movement.”
Before Facebook’s announcement, the Bitcoin was trading at under $7,200 per coin. Within hours and days, Bitcoin sentiment purportedly “surpassed its highest level since May 11th”. Bitcoin has gone up about 20 percent this month alone but still stands far from its record levels near $20,000 seen at the end of 2017.
Facebook’s announcement also led to growth in awareness about cryptocurrency. Active participation by main stream media, including Bloomberg, The Verge, New York Times and Fox Business, led to making more information available regarding the cryptocurrency. Libra drove more conversations around cryptocurrency. The Crypto Twitter-sphere also saw an uptick in the number of tweets with 24-hour volumes rising from 30,000 to over 40,000, showing around 33% gain “within hours”. Rise in interest in the digital currency sector can directly be seen in rise in BTC’s price.