After the announcement of Facebook’s own currency and increasing interest from major investors, the Bitcoin exchange rate literally explodes. Warnings of a possible new crash are not long in coming.
Driven, among other things, by Facebook’s plans for its own digital currency, most crypto currencies are continuing their latest rally. Bitcoin, the oldest and best-known digital currency, surpassed the 11,000 dollar mark this Saturday for the first time since March 2018, after having risen above the 10,000 dollar hurdle for the first time in a long time only a few hours earlier. Source: https://thefrisky.com/
Some experts are warning of the increasing dangers of a price collapse after the recent high. But there was also further potential for the share price. “In view of such a dynamic re-conquest of the five-digit price level, the crypto thaler should not only attract speculators, but also increasingly attract institutional addresses,” Timo Emden of Emden Research wrote in a market commentary. “A not inconsiderable number of investors are simply afraid of missing out on something. Many investors move their assets from gold to btc, read the reasons at http://general-history.com/gold-vs-bitcoin-from-a-historical-perspective/.
Emden warned of exaggerated euphoria, and many investors are currently blunting the risks. The price rally seems to cloud the senses. The current price fantasies of market participants are causing high volatility in the market. Profit taking and the resulting strong setbacks are possible at any time.
In the slipstream of the Bitcoin high-altitude flight, other crypto currencies such as Ether or Bitcoin Cash also continued to increase. The total value of all around 2270 crypto currencies last amounted to around 330 billion dollars and thus about ten percent more than on Friday evening. That is also about three times as much as in mid-December 2018, but still almost half a trillion dollars less than at peak times at the end of 2017. The mainstream interest in crypto currencies is currently huge,” says Emden.
Interest aroused among major investors
The situation is somewhat reminiscent of the summer and autumn of 2017, when the Bitcoin crossed one thousand mark after the next and rose from 2000 to 20,000 dollars within a few months. “Investors are currently having a déjà vu experience. History seems to be repeating itself,” said Emden. “After the jump over $10,000, the ‘big money’ is now flowing into the market, which could quickly raise the price to even higher dimensions. The opposite side is now threatened by spectacular crashes.”
Crypto currency once again on the upswing Bitcoin is increasingly establishing itself in the retail sector. Together with other crypto currencies, the Bitcoin benefits above all from the increasing interest of large investors and companies in digital currencies. On the one hand, there are always reports that larger investment houses want to enable their customers to trade in digital currencies. This includes Fidelity, one of the world’s largest asset managers.
In addition, there is the great potential currently seen in the crypto currency planned by Facebook called “Libra“. This week, the social network with 2.3 billion user accounts presented concrete plans. However, the differences to existing crypto currencies, especially to the “primary rock” Bitcoin, are large. The BayernLB analysts, for example, are of the opinion that Libra is basically not a new crypto currency, but comes closer to a payment system such as Paypal.
Despite considerable differences in some concepts, existing digital currencies are also benefiting from Facebook’s plans – since then the Bitcoin exchange rate has risen by around a quarter. Since the interim low in December, the Bitcoin has even increased in price by slightly more than 250 percent. However, the record high of around 20,000 dollars reached at the end of 2017 is significantly higher.