Bitcoin’s market cap has hit $100 billion in the last 24 hours, with most of the other leading cryptocurrencies on an upwards trajectory as well.
At the time of writing, Bitcoin is hovering around the $5727 mark, surpassing figures seen during the “Bitcoin boom” at the beginning of April. This latest spike in market cap has seen BTC break past the $100bn boundary for the first time since November. Shortly after this, the Bitcoin Cash fork caused a huge downturn that impacted the whole market.
The whole market has a cap of just over $186 billion and if this trend continues, it will be on course to hit the highest level for 2019.
So what is behind this sudden rise?
Yesterday Facebook announced that it was in the process of creating its very own cryptocurrency payments system.
According to reports, “Project Libra” will develop its own stablecoin that will sit at the centre of a whole new network. The social media giants are allegedly in negotiations with both Visa and Mastercard and could be set to incentivise its 2.7 billion users to interact with advertising on its platform.
Analysts are speculating that the news of one of the world’s largest tech companies, looking to move into cryptocurrency could have sparked the recent bullish move in the market. Such an action by Facebook definitely presents a strong display of confidence in the industry and it could potentially represent a turning point in how crypto is perceived by the masses.
Whilst many other big companies and banks have all made moves towards adopting cryptocurrency, Facebook are one of the most well known brands on the planet. Their move into the industry shows that it is no longer just start-ups and crypto-based businesses who have an interest in blockchain technology and the power of crypto, but rather that crypto is moving well and truly into the mainstream.
Some are not so sure that the recent increase is due to Facebook. A number of experts have stated that they believe it could be more to do with the news around Tether and Bitfinex.
Earlier this week, the New York Attorney General announced a court order had been obtained that would halt the activities of Bitfinex and Tether following allegations of covering up the loss of $850 million. It is claimed that money was moved between the two entities to cover the loss of commingled funds that were both corporate as well as belonging to clients.
Bitcoin is currently trading at just over $6,000 on Bitfinex compared to $5,785 on Binance. Premiums like this often point to serious issues at an exchange as users rush to cash their funds out before disaster strikes.