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Bitcoin may continue growth to $10 000

Jun 20, 2019

CoinMarketCap informed that BTC price over the last 7 days increased for more than 14% even with the moderate decrease from the high reached on Monday. Considering this rapid increase BTC demonstrates a high income among the coins with capitalization of more than $1 billion. Bitcoin SV (BSV) and Monero (XMR) also grew for more than 10%.

One more reason for optimism

Fundstrat Global Advisors analyst Tom Lee once again shared his optimistic forecast with Bloomberg regarding the prospects for further growth of BTC. He notes that the breakdown of the technical resistance level of $ 10000 could trigger a strong growth wave, up to $ 40000 level. Explaining what could be a driver for strong BTC growth, Lee speaks of “lost profit syndrome among investors” (Fear Of Missing Out).

But it’s better not to pin faith on Lee and other experts predictions. After all, we all remember the optimistic forecasts made by them at the end of 2017, after which absolutely all cryptocurrencies collapsed. Some coins lost in price more than 95%, while BTC fell by 83%. This indicates that the majority of forecasts, even very well-known experts and crypto-enthusiasts, are not based on fundamental factors, trends and prospects, but on one’s own desires and ambitions.

Facebook Libra supports BTC

Most experts associate another wave of BTC growth with the announcement of the launch of Libra cryptocurrency by Facebook. Facebook estimates Libra’s potential client base at 1.7 billion people around the world. These people do not have access to bank accounts. Given the incredible popularity of this social network, there is a very high probability of the rapid spread of cryptocurrency among a huge number of users. All this has a positive impact on the entire cryptocurrency market and BTC in particular.

Garrik Heilman, the head of research at Blockchain, adheres to the same point of view. “Many people look at what Facebook is doing and think:“ Billions of people will have access to digital currency. Perhaps now it will be easier for them to use other cryptocurrencies, including Bitcoin “.

We also note that Libra will be issued in the form of a stablebcoin, so that it is supported with real currencies: dollar, euro and others. As a result, it will be less volatile compared to Bitcoin and other coins. The cryptocurrency will be served by a specially created structure of the Libra Association, which includes Visa and Mastercard payment systems, as well as PayPal, Ebay, Spotify, Uber, Lyft.

Facebook has every chance to succeed, as there is available experience of other companies that have already made their amount of errors. Therefore, the largest payment systems are ready to work with Libra.

US Senate is against of Facebook Libra

CNN reporter Brain Fund informed that US House Representative Maxine Waters called on the largest social network Facebook to stop working on the Libra project until Congress and regulators have the opportunity to explore relevant issues and take action.

Reuters also reports that another lawmaker, Patrick McHenry, called on the Financial Services Committee to convene a hearing on the Facebook initiative. A little later, information appeared that the US Senate Banking Committee would hold a hearing on the Libra cryptocurrency from Facebook. Facebook representatives will participate in this meeting, during which they will answer questions from the legislators.

Given all this, it is fair to assume that Facebook will face more than one wave of obstacles in a number of countries around the world.

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