According to CryptoCompare, at 06:00 UTC on June 16, Bitcoin’s price set a new high ($9,341) for 2019 and reached its highest level since March 2018. And with Facebook set to reveal details about its upcoming stablecoin (project Libra) on June 18, Circle CEO Jeremy Allaire feels confident that the BTC price will be over $10,000 by June 21.
As you can see in the price chart below, in the past 24-hour period, the Bitcoin price has surged over 7%:
This means that Bitcoin’s Return on Investment (ROI) for the year-to-date (USD) is over %150.
As for the broader market, things are looking pretty good there too:
Facebook’s Entry Into the Crypto Space
The main explanation for the current bullish sentiment seems to be reports over the past 10 days from Techcrunch, The Wall Street Journal, and The Block, which say that according to their sources Facebook is planning to release details of its stablecoin project (Libra) on June 18 and that it has the backing of such big names as Andressen Horowitz, Union Square Ventures, Coinbase, Vodafone, eBay, Uber, Spotify, Mastercard, Visa, and PayPal.
One person who is very confident that Facebook’s purported announcement on June 18 will have a positive impact on the Bitcoin price is Jeremy Allaire, the CEO of Circle, who had this to say yesterday:
Crypto market rallying (again) ahead of Libra launch, marking a massive inflection point in global adoption of cryptocurrency. BTC > $10k by June 21st, marking start of Crypto Summer.
— Jeremy Allaire (@jerallaire) June 15, 2019
But he is not the only one excited about Facebook’s entry into the crypto space. For instance, Spencer Bogart, a partner at crypto-focused venture capital (VC) firm Blockchain Capital, is similarly enthusiastic:
For better or worse, Facebook’s crypto effort is among the most bullish external tailwinds for Bitcoin in 2019/2020 (topped only by reinvigorated push among central banks for easy-money globally)
— Spencer Bogart (@CremeDeLaCrypto) June 11, 2019
Bogart says that although Bitcoin does not “need” this, project Libra is a “bullish catalyst” for Bitcoin for two main reasons:
- “It potentially eases the biggest friction in acquiring digital assets like Bitcoin (onboarding): the transition from fiat to digital assets. Once in digital assets, movement between them is relatively fluid.”
- “It catalyzes the buildout of infrastructure to support digital assets (custody, wallets, compliance, etc.) among large financial institutions and payments providers that, to-date, have taken a ‘wait and see’ approach.”
Reactions to Bitcoin Price Going Over $9,300
Arthur Hayes, Co-Founder and CEO of BitMEX:
— Arthur Hayes (@CryptoHayes) June 16, 2019
Alex Krüger, Economist and Crypto Analyst/Trader:
$BTC just traded new year highs.
Next major resistance levels: 9600, 10000, 11500-11750, 13000, 15000, 17400, 20000, moon.
— Alex Krüger (@krugermacro) June 16, 2019
Krüger also tweeted earlier today that “Greed is good”, referring to that famous line spoken by actor Michel Douglas from the 1987 U.S. movie “Wall Street” and the fact that the “Crypto Fear & Greed Index” is currently at 80 (“Extreme Greed”):
Speaking of Fear of Missing Out (FOMO), it is worth remembering what Tom Lee, Co-Founder, Managing Partner, and the Head of Research at independent research boutique Fundstrat Global Advisors, said during the past week (on June 12) at the 2019 CryptoCompare Digital Asset Summit in London: that if the Bitcoin price manages to exceed $10,000, then it is “very likely” to break its all-time high and reach $40,000 within five months.
Other Reasons for Feeling Bullish About the Bitcoin Price
According to CoinMetrics.io, there are now over a million daily active addresses, which refers to the number of unique (from or to) addresses per day; this is the highest level since 27 November 2017, as Kevin Rooke pointed out yesterday:
When Bitcoin first broke 1 million active addresses (Nov 27, 2017), 1 BTC was $9,352 and the median tx fee was $3.23.
Yesterday 1 BTC was $8,230 and the median tx fee was $1.33.
— Kevin Rooke (@kerooke) June 15, 2019
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