There’s some good news this morning for bitcoin enthusiasts. At press time, the currency is trading for well over $10,500, and it seems the currency has shot up by more than $500 during the early morning hours of Friday, August 2.
Bitcoin Is Swelling Fast
This is especially pleasing to the eye considering how poorly bitcoin has been doing as of late. Recently, the currency fell to as low as $9,400 after being hit from every corner by negative sentiment. The first came in the form of tweets submitted by President Donald J. Trump, who became the first sitting U.S. president to address the existence of crypto and offer an opinion on it.
If only that opinion had been a little more positive. Instead, Trump mentioned that he didn’t really care for bitcoin or its crypto cousins given that they “weren’t real money” and that their values were based on “thin air.” From there, Libra – Facebook’s new cryptocurrency – was struck by a congressional hearing following several weeks of back and forth arguments between members of the U.S. government and David Marcus, the head of Facebook’s blockchain division.
Congress ultimately asked that Marcus and his team hold off on developing Libra further until they could better understand the goals, properties and ideals of the coin. Marcus has had no choice but to concede, and now it appears Libra is going to be delayed for at least two years.
However, it’s being suggested that negative publicity is better than none, and bitcoin is swelling quickly as a result. A new report from Delphi Digital acknowledges that bitcoin is rising fast and discusses some of the additional elements that could potentially be contributing to is sudden spike.
The report claims that “monetary easing” is occurring in many nations as several countries are preparing for what could turn out to be a period of economic strife, though a recession has not yet been confirmed by analysts. The report states:
First, and arguably most important, sentiment from global central banks took a drastic turn towards more dovish monetary policies. The Fed, ECB, BOJ PBOC and many others are now preparing market participants for more rate cuts and additional stimulus features as they attempt to keep the current economic expansion going.
Will the World Face Financial Hardship Soon?
The idea is to keep the global economy booming and continue with the creation of new jobs and tasks so that citizens remain unaffected by potential downturns in the monetary system. Should this occur, bitcoin is in a prime position to spike even higher. The report says:
The rising risk of currency devaluation, especially among reserve currencies, is a longer-term catalyst that should propel BTC higher along with gold… The global slowdown everyone feared was on the horizon has begun to show up in the economic data as well.