LONDON/NEW YORK (Reuters) – Bitcoin is being tested at 15-month highs on Monday, after a jump of more than 10% over the weekend, with analysts attributing the spike to a growing optimism about the adoption of cryptocurrencies, after Facebook announced the availability of the weighing Scale, digital currency.
The original cryptocurrency hit $11,247.62 on the Bitstamp exchange late on Sunday, the highest since March of last year. Later on he retreated, and was last up 1.9% to $11,039.62.
Facebook said last week that it was planning to launch a new cryptocurrency called the Scale, though, the announcement immediately sparked questions from regulators and politicians around the world.
Mati Greenspan, an analyst at eToro, said the bitcoin gains have underscored growing optimism among private investors is that Facebook’s plans were part of a larger trend of major companies to the adoption of cryptocurrencies.
“It is believed that the Scale will be to create a mass awareness of cryptocurrencies, and will serve as an entry point to the show.”
(Image: Bitcoin tests $11,000 – tmsnrt.rs/2Ft6UJU)
BITCOIN “HALVING” WILL BE IN 2020
One of the biggest reasons for this is the bitcoin rally, analysts said, was the cryptocurrency of the following “reduction” in May of 2020, in which the rewards to the bitcoin miners are shrinking. That has to be limited to the delivery of the digital currency.
Bitcoin is based on the so-called “mining” computers are validating blocks of transactions are competing to solve mathematical puzzles in order to 10 minutes. In return, the first to solve the puzzle and clear the transaction, will be rewarded with new bitcoins. Bitcoin technology has been designed in such a way that it cuts the pay for the miners in the half to make the four-year period, in a move meant to keep a lid on inflation.
The mining reward is currently at 12.5 bitcoins. In the following, reduce by half, by 2020, the reward is 6.25 the new bitcoins.
“Bitcoin will always be 200%, pump is within the 1 year prior to the reduction, and even much, much larger pump for the next year in half,” said Stuttgart-based Marius, Who, as a social media influencer who works with crypto-investing app is Fan Fund of.
Traders cited geo-political factors, tensions in the Gulf region of the US-China trade war as well as the project of interest in the bitcoin, which has more than doubled in price since the end of March.
FILE PHOTO: A Bitcoin logo is seen on a cryptocurrency ATM in Santa Monica, California, USA, on January 4, 2018. REUTERS/Lucy Nicholson/File Photo
Thomas by Puech, of the Enigma of Securities, a London-based company, which specializes in larger-sized over-the-counter cryptocurrency offers”, said the growing tensions between the United States and Iran have had “gas” for bitcoin and other cryptocurrencies.
At the end of March, the bitcoin broke out of a residence on a limited price movement. So far, this year has risen by almost 200%, and a rise in the threat posed by the double-digit price swings.
Bitcoin’s volatility has been a boon for the larger investors, such as hedge funds and other investors looking for a return as central banks around the world lean in the direction of lower interest rates, said Puech.
Report by Tom Wilson in London and Gertrude Chavez-Dreyfuss in New York; Editing by Tommy Wilkes, Mark Potter and Chris Reese