There has been a lot of uncertainty about the future of the global economy. An unsuccessful trade meeting between President Trump and President Xi, scheduled on Saturday during G-20 Summit, can initiate a mild global recession as per some economists. However, the conflict has been very beneficial for proponents and traders of the world’s biggest cryptocurrency, Bitcoin.
Just yesterday, Bitcoins gained its 18-months high when it hit $13,666. It was also the biggest surge of the cryptocurrency since April, this year. Overall, Bitcoins gained nearly 260% in value this year, even though it is well below its all-time peak of nearly $20,000. It has been noted that investors are keenly looking for safe alternatives amid growing trade tensions between two economic superpowers.
Libra, a recently announced and soon-to-be-launched digital currency by Facebook, is another major driving factor in this regard. With Facebook having such a gigantic consumer base, Libra is expected to play a vital role in mainstreaming of cryptocurrencies. This has resulted in investors making bets in favor of Bitcoins and some other cryptocurrencies.
The year 2018 has been very upsetting for digital currencies as people started losing interest due to certain limitations of digital currencies and their inability to bring it into the mainstream. However, analysts believe that Facebook’s announcement regarding Libra may provide cryptocurrencies with another streak of momentum. Foreign Exchange broker OANDA’s senior market analyst Edward Moya observes, “Momentum appears to be stirring up fresh new investors”.
Major central banks for big economies have kept interest rates extremely low in recent months and this may be another big factor that has led investors to seek means of diversifying their investment portfolio and cryptocurrency is seen as a reliable element to add in a portfolio by many investors.
Genesis Global Trading CEO Michael Moro mentions that the surge in Bitcoins at present may be very different from the one observed in 2017. There were too many Initial Coin Offerings (ICOs) in 2017 that proved distracting for the market. On the other hand, there is far less number of distractions in 2019 so far. Another key difference is that various big institutional investors are also actively looking to include cryptocurrencies in their portfolio and the number of such investors is expected to multiply in the coming years.
Bitcoins are currently being traded at a value of around $13,650. Skeptics of the digital currency are in pursuit of stopping the surge and they currently anticipate $15,000 to be the next key resistance level.