Bitcoin climbed above the $10K position at the start of the weekend, ending the wait. With high volumes backing the surge and dominance in the 60% region, Bitcoin was able to extend the rally and hit around $11K before meeting major resistance. Bitcoin climbing to $11K saw the asset set a new 18-month high and set itself ready to reach for its all-time high. The asset has now successfully pulled itself up and is now only down by around 50% from its all-time high.
The weekend move did not only go well for the number one asset but also for other cryptocurrencies. A majority of cryptocurrencies also surged and for many set new yearly highs.
Ethereum, for instance, climbed above $300 which is a 10-month high. For most altcoins, there is still much gain to come, while Bitcoin is down by around 50% from its all-time high, most altcoins remain around 80% down from their all-time highs.
At the time of press, Bitcoin has undergone a slight pullback going to $10,600. This a 2.59% drop in the last 24 hours. As for the total market cap, this is hovering around $325 billion.
What’s Triggered The Rally?
According to some reports, two things could have driven the market to its current high. The recommended ban on cryptocurrencies in India and the launch of Libra. A few days ago, the Indian government hinted at plans to ban cryptocurrencies in India. This could have seen the Streisand effect come to play.
The Streisand effect is phenomenal in which attempts to ban, hide or censor something, ends up publicizing the same. Data shows that demand for Bitcoin is currently high in India and this could have been triggered by the ban reports.
The launch of Libra as we have reported could have also affected prices in recent days. Some analysts have recently noted that the launch of Facebook’s coin could have given a sense of legitimacy to Bitcoin among investors.
Since the launch of cryptocurrencies, some governments and economists have termed cryptocurrencies as Ponzi schemes. Now with a big company such as Facebook launching the same, it is hard to admit that it is launching a Ponzi scheme.