How did Bitcoin price surge more than nine percent (9%) in less than twenty-four hours, that’s baffling, right? Well, the crypto market is enjoying bulls, and many of the major cryptocurrencies have experienced increases in their token prices over the weekend.
Leading the crypto markets, Bitcoin the cryptocurrency that accounts for the largest percentage of the market cap also crossed some important milestone in these sessions.
Bitcoin crossed the ten-thousand-dollar ($10K) mark at the start of the weekend. Moving into the weekend, the token crossed the eleven thousand-dollar (11K) mark momentarily before facing resistance and falling back.
The token’s price currently resides at ten thousand nine hundred dollars ($10,905) at the time of writing. The token has reached around fifty percent (50%) of its all-time high and predictions are that it will soon surpass even that.
Other cryptocurrencies also enjoyed bulls over the sessions as Ethereum rose above the three-hundred-dollar ($300) mark reaching a ten-month high. The gross market cap for cryptocurrencies resides around $325 billion.
What really caused the rally?
So, what caused this rally? There can be two possible reasons for this rally; first being the recommended ban of cryptocurrencies in India. The Indian government hinted at banning cryptocurrencies in India, which caused the Streisand effect to come to play.
The Streisand effect is a phenomenon that occurs in an attempt to ban or censor something and ends up publicizing the same thing. The Bitcoin sphere in India is currently heated as the demand for Bitcoin rises.
The second reason may be the launch of Libra. It may not directly affect Bitcoin, but seeing as a major Silicon-valley company like Facebook is launching its cryptocurrency gives the sector more credibility.
When cryptocurrencies were initially launched, they were labelled as Ponzi scheme but seeing as Facebook established its own crypto it is hard to admit that it’s a Ponzi scheme.