In an encouraging signal for cryptocurrencies, Bitcoin on Wednesday climbed to an 18-month high level as analysts attribute the rise to the launch of Facebook’s Libra.
In an encouraging signal for cryptocurrencies, Bitcoin on Wednesday climbed to an 18-month high as analysts attributed the rise to the launch of Facebook’s Libra. The investors looking for safety in other options may now find refuge in the virtual currency recently launched by the social media major, global news agency Reuters reported citing the experts. On Wednesday, Bitcoin was trading near $13,000-mark, up 240 per cent since the beginning of the year, even as it remains below the record high of about $20,000. The popular cryptocurrency has now jumped eight consecutive days.
Facebook last week announced the launch of its cryptocurrency Libra by end of June 2020, signalling the company’s plans to expand into the digital currency market. Reuters reported the analysts as saying that Libra has reignited interest of the crypto-investors in coins, while investors seeking safety have also pushed up Bitcoin’s price.
“It obviously does appear to be benefiting from some sort of flows that gold is benefiting, too,” Reuters reported citing Michael Hewson, chief market strategist at CMC Markets. “You’ve got all this stuff about Libra going on, which is renewing interest in bitcoin. Crypto is back in vogue,” he added. Along with rise in other virtual currencies such as Ethereum’s ether and Ripple’s XRP, Bitcoin has risen 150 percent since early May.
Last year, the Reserve Bank of India (RBI) had said that entities regulated by it cannot provide services to any individual or businesses dealing with or settling digital currencies. Earlier in 2019, the Supreme Court had given a deadline to the government of four weeks to come up with regulations for cryptocurrencies.