The crypto community is eyeing a mega adoption drive in digital currencies as Facebook is working on a stablecoin of its own. According to the Wall Street Journal, the coin could be announced this week led Bitcoin to rise higher up and reach $9,000 in no time.
When is Facebook launching its cryptocurrency?
Facebook has kept its cryptocurrency project under the wraps for a year, but recent reports have highlighted that the social media giant wants to launch its own stablecoin. A recent report from the Wall Street Journal suggested that the Zuckerberg-led company could reveal its coin this week.
The blockchain project will be crucial to Facebook’s payments business. The company has already solicited $10 million in investment from major payments firms like Visa, MasterCard and PayPal, and ride-hailing company Uber. They will now be a part of a consortium that will govern the new Facebook digital currency.
Following the news report, Bitcoin breached resistance and climbed over 9,000, reaching its highest point since May 2018. At the time, the coin was falling from its all-time highs of $20,000. This year, the coin has risen up by $5,000, gaining momentum after a year of disappointing lows. On late Friday (Hong Kong time), Bitcoin’s price rose by 9.4% to reach $9,191.38. Other cryptocurrencies also jumped up with Ethereum rising by 4$ and Litecoin moving up by 4.4%.
Stocks linked with cryptocurrencies also experienced a price jump In Asia. Monex Group Inc.’s price drove up by 2% while Remixpoint Inc. jumped by 9.9%. Tokyo-based Ceres Inc. went up by 2% while Seoul’s Vidente Co. climbed by 8.4%. The question in investors mind is should they buy bitcoin now to take advantage of the momentum?
Bitcoin’s rosy story continues
In an interview with Bloomberg TV, Capital Link International CEO Brett McGonegal said that people are looking for a hedge investment or a safe haven. An asset like Bitcoin is providing them an opportunity to do so. Note that the Bitcoin price movement also coincided with the rising tensions between the US and China over trade tariffs. McGonegal further said that the inflection point in any nascent asset like Bitcoin is when institutional money starts flowing in. Once institutional investors start throwing their weight behind Bitcoin, it could go much higher.
The Bloomberg Galaxy Crypto Index shows that Bitcoin has moved up by over 130% year to date. The higher valuations can be attributed to a large number of companies getting interested in cryptocurrency offerings. With a tech behemoth like Facebook launching its own stablecoin, investors could find Bitcoin more appealing.