The bulls have overtaken cryptocurrency market as the price of Bitcoin has jumped to its highest level in almost a year and a half. An exponential rally in the crypto-market has propelled Bitcoin over and above $12,935.58 in the early hours of the Asian trade.
However, the prices later fell to less than $12,600 as European markets opened. Notably, this is the biggest one-day jump Bitcoin has witnessed in the last one month.
Surprising all the analysts and traders, the value of Bitcoins has soared for the past eight trading sessions in a row as the overall return for this year in Bitcoin stands more than 250 percent. Financial Times reported that this rate of return is more than 12 times the return of the next best-performing currency or commodity, palladium. Last eight weeks have registered the much of gains in Bitcoin as it rose more than three times since the beginning of May.
As per some crypto-bulls, Bitcoin is expected to rise to an unimaginable level and may reach as high as $50,000. As per a report in the Wall Street Journal, one of the buyers has bought 30 call options at New York-based crypto marketplace, LedgerX. The Traders has invested $4,500 on the options, which will expire in June 2020, allowing him to buy Bitcoin at an astonishing level at $50,000.
The sentiment around Bitcoin has also propelled other digital currencies. As per Coindesk, a cryptocurrency information provider, Ethereum, the second-biggest cryptocurrency jumped more than 5.5 percent on Wednesday which has taken the return to 150 percent in 2019. Experts have attributed multiple reasons for a sudden jump in the prices of Bitcoin.
Facebook's move to enter into the world of crypto has been one of the major reasons why bulls have overtaken Bitcoin. Mark Zuckerberg led Facebook has launched its own currency called Libra. Experts are positive that the step would be optimistic for the people to accept cryptos both as a means of payment and as a store of wealth.
Craig Erlam, senior market analyst at Oanda said, "Adoption is obviously key for this space so the Facebook news is being viewed positively." He further added that Bitcoin has been struggling for legitimacy by many traders since 2017 which witnessed a free fall in the prices of cryptocurrencies. Now with Facebook entering into cryptocurrency business, more people will get to know about it."