The uptrend in the bitcoin market has paused following the introduction of Libra, a blockchain-based cryptocurrency unveiled by Facebook.
As of 1255 GMT today, the BTC/USD exchange rate was trading at $9,241 on CoinStats’ crypto portfolio management app. That brought the pair more than 3 percent lower from its 2019 top of $9,353.
Bitcoin’s upside sentiment slowed down specifically after the release of Libra’s whitepaper (roughly around 0900 GMT today). The cryptocurrency rebounded from $9,274 to pursue an interim downside correction and fell to as low as $9,069.
Facebook’s entry into the cryptocurrency ecosystem is typically being considered as one of the most bullish news for bitcoin. Prominent market analyst Luke Martin said on Monday that Mark Zuckerburg’s cryptocurrency project would probably bring the concept of bitcoin before masses.
“Libra will introduce more users to Bitcoin than any other coin before. 2.6 billion people that are one step closer to learning about, buying, and understanding BTC.”tweeted Martin.
Meanwhile, other popular cryptocurrency bigwigs believe the same. Saifedean Ammous, the author of the Bitcoin Standard, said Facebook is building a centralized payment processor on the US dollar and calling it a blockchain. He reiterated that bitcoin will remain an indisputable, global payment protocol.
The bitcoin price‘s interim correction could be natural, given the cryptocurrency just settled its 2019 high after posting seven consecutive buying sessions. Technically, the cryptocurrency’s momentum indicator on the daily charts was close to overbought before today’s correction.
BTC is receiving support from sentiments arising on the macroeconomic scale. The Hong Kong protests, for instance, has led the local rate $150 higher than the international one. Atop that, an underperforming Chinese Yuan is prompting investors to park their risks in bitcoin, as confirmed by Chris Burniske, a partner at New York-based venture capitalist firm, Placeholder. Excerpts:
“The US’s trade war with China, China’s tightening of capital controls to limit funds fleeing the country, and a weakening yuan all added fuel to $BTC’s fire. Interestingly then, we have bitcoin satiating appetite for risk in the West and much of the world, while simultaneously serving as a risk-off hedge in China.”