Last weekend was very productive for Bitcoin. The first established cryptocurrency climbed over $ 9000 barrier, firing the imagination of its holders, who already dream of watching Bitcoin renew its previous highs at $ 20,000. It should be noted that BTC had no problems rising above the $ 9000 mark from the very first attempt. The BTC/USD pair successfully strengthened above this barrier and clearly intends to maintain its upward trend.
The rumor in the street that Bitcoin's recent growth and a new wave of popularity were triggered the increased support and interest from institutional investors, as well as escalating trade tensions between the United States and China. In the face of growing trade opposition between the two leading economies, more import tariffs and attempts to circumvent them, the demand for an anonymous means of payment of decentralized nature has increased again. Bitcoin is currently the best candidate for this position. Despite the fact that BTC is now at the very early stages of becoming a widely recognized financial asset, there are obvious signs that in the future it may become a full-fledged financial instrument, used for hedging in the event of a geopolitical risk or liquidity crisis, especially if this could lead to the devaluation of traditional foreign exchange assets.
Facebook (NASDAQ:FB)'s plans to launch its own cryptocurrency could have become another growth factor for BTC/USD. According to the Wall Street Journal, Facebook has signed up more than a dozen companies including Visa Inc (NYSE:V).,Mastercard Inc (NYSE:MA)., PayPal Holdings Inc (NASDAQ:PYPL). and Uber Technologies (NYSE:UBER) Inc. to back its new digital coin Libra, which is set to launch in the next year. It is worth noting that Facebook hopes to raise as much as $1 billion from existing and future partners. Company officials pointed out that Libra would become a convenient way of sending money across borders while avoiding significant fees, such as those charged by Western Union and other money-transfer services. Libra could also open up online commerce to huge numbers of people who don't have bank accounts or credit cards. The very idea that billions of people will get access to the world of digital currencies suggests that Bitcoin will get its attention too - and hence the influx of new funds.
Speaking about Bitcoin's growth, it should be noted that the higher it climbs, the better the so-called self-sustaining speculative mechanism works - meaning that when an asset starts growing rapidly, more funds flow into the market to buy it. For example, the S&P 500 index rose by 15% this year, and gold - by 4.8%. Bitcoin, in its turn, rose by 154%. The figures speak for themselves. Isn't it a perfect advertisement for a profitable investment? The closest BTC/USD target is $10,000, and growth will most likely continue. Don't miss the next bullish wave.