Bitcoin reached a record high on Friday, June 21, climbing above $10,000 for the first time since March 2018. This means the price is up more than 150% since the start of the year when it could have been bought for around $3,600. Bitcoin was not the only cryptocurrency to see a surge. Ethereum (ETH), Ripple (XRP) and Litecoin (LTC) all recorded notable gains that same day.
So what’s really at the wheel of this uptick? While no one is sure why Bitcoin price has climbed sharply, many believe there are several factors behind the surge.
Millennials Crypto FOMO
Peter Brandt, a highly successful cryptocurrency trader, and a chart analyst explained how millennials contributed to the latest Bitcoin’s price rally. Referring to the “Obnoxious Twitter Millennial Index (OTMI),” Brandt claimed that this particular sector of a population has started investing in crypto due to FOMO.
The “Obnoxious-Twitter-Millennial-Index” (OTMI) is registering extreme FOMO. That is always a sign to consider taking some money off the table. pic.twitter.com/t0t1NVo3Ys
— Peter Brandt (@PeterLBrandt) June 22, 2019
Facebook’s Libra Launch
The recent Bitcoin rally has come on the heels of Facebook’s announcement of its native cryptocurrency dubbed “Libra.” The social media behemoth released the Libra White Paper on June 18 that explains how its cryptocurrency will work. The company also said it is working with dozens of partners including MasterCard, PayPal, Visa, Uber, Vodafone, and eBay to create a digital currency it hopes will create an alternative to fiat, bank transfers, and credit cards. There’s a strong FOMO related to the news.
Bitcoin Halving in 2020
Another major reason for the sustained price rise is the rush triggered by the Bitcoin halving scheduled for next year. Traditionally, there seems to have been a positive link between Bitcoin halving events and its price. Every year leading to the halving, Bitcoin finds a bottom, builds momentum, and goes on a historic rally soon after the event takes place. It remains to be seen whether the next halving will fire up prices again.
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