Bitcoin prices surpassed $10,000 today, breaking through this key, psychological level and hitting their highest point since March 2018.
The world’s most prominent digital currency climbed above $10,000 at roughly 07:30 p.m. EDT, before extending these gains in the following hours, CoinDesk figures show.
At the time of this writing, bitcoin had reached as much as $10,801.59, additional CoinDesk data reveals.
Bitcoin, which has been following a strong, upward trend for several months, has climbed more than 230% since reaching a local low of roughly $3,100 in December.
When explaining the digital currency’s recent bullishness, analysts have pointed to factors like strong market sentiment, optimistic media coverage and widespread hype surrounding the release of Facebook’s libra currency.
“This rally we are witnessing can be largely attributed to Facebook releasing the details of the long-awaited Libra cryptocurrency,” said David Martin, chief investment officer at U.S. asset manager Blockforce Capital.
“When Facebook released the whitepaper explaining the project on Tuesday, major channels picked up the story and ran with it,” he noted.
“Since then, Libra coin has dominated the traditional financial business news cycle and has led to a quick public response from major governments and business leaders,” said Martin.
“All this exposure has led to bitcoin entering the mainstream news discussion as well,” he added.
“We believe that new entrants are more likely to make a correlation between bitcoin and the Libra project.”
Martin emphasized that “while this new project will generate a lot of interest it is important to realize that this new digital asset will be quite different from bitcoin in several major ways.”
At the same time, he emphasized that “the overall increased public interest is a driving force behind bitcoin’s rising price.”
Chris Keshian, a cryptocurrency investor and former hedge fund manager, also spoke to libra’s impact, stating that:
“Facebook’s Libra has legitimized crypto for many investors, causing increased focus on the asset class of late.”
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, described libra as “America’s ‘WeChat’ moment,” adding that “bitcoin has and will continue to benefit from its hype and success.”
“Right now people are loading up in anticipation of the launch of Libra,” he said.
Garcon also spoke to the positive media coverage that has characterized digital currencies lately, stating that:
“If you pay attention to the news there are several stories about big brands and companies looking to implement blockchain or cryptocurrencies in their strategies.”