The reason for the current spike in the price of Bitcoin has been analyzed carefully. This has added to $30 billion to the total value of the global cryptocurrencies. Facebook has the potential to rival Bitcoin, and it functions as the first catalyst drive Bitcoin price. The halving event of Bitcoin is said to be yet another catalyst. Cryptocurrencies are naturally resilient to censorship of any kind. The Prime Minister of India, under Mr. Prime Minister, Narendra Modi had a rather unconventional approach to the monetary policies of the government. Another reason for the price spike of Bitcoin is the ban from the Indian government. Currently, there is a blanket ban on the issuance, purchase, and sale of cryptocurrencies in the country. Many opine that the planned cryptocurrency from Facebook has provided legitimacy to Bitcoin and other kinds of decentralized cryptocurrencies. The trend is currently troublesome for India to justify a ban. Nischal Shetty, CEO of WaxirX, stated, “The panel report held weight before Facebook announced its plans. The tech giant launching a similar currency provides some sense of legitimacy.” When big companies like Facebook are making it to the cryptocurrency space, several other giant companies will also be making their entry into the cryptocurrency space, and it will not be easy for governments to stereotype their ideal of Ponzi schemes on every kind of cryptocurrency. Glen Goodman, stated, “Bullish investors believe if Facebook’s crypto Libra becomes a trusted payment mechanism then people are also more likely to trust Bitcoin as a reliable long-term store of value, a digital gold.” While the ideals of trends and opinions about how Bitcoin will progress is making its rounds, several investors remember how the price of Bitcoin touched $10,000 last time and then it went high up to $20,000. Some investors might want to take the profit out of their table. Bitcoin crossed $10,000, and this has created a lot of visibility for the token in the current trend. Several analysts opine that this move has triggered the fear of missing out (FOMO). The analyst further stated, “After Bitcoin breached $10,000, we quickly rose to $11,000 on the back of likely FOMO buying.” Dave Hendricks, CEO of Vertalo, stated that FOMO influences the recent price hike of Bitcoin.
Richard is the Editor-in-chief of Bitcoin Journal. He has over 10 years of experience with the news industry mainly handling the editorial cycle.
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