Cryptocurrency news: Bitcoin smashes the $6000 level

Summary:

  • Bitcoin moves above the key $6000 level for the first time in 2019
  • Facebook is working on its own cryptocurrency
  • Fidelity Investments surveyed Bitcoin trading interest among institutional investors

Bitcoin hits new 2019 high

Bitcoin hit new 2019 high this week, rising 45% throughout the past month and nearly 100% since December lows. The cryptocurrency market suffered a bit on the back of Bitfinex issues. Let us recall, New York Attorney General sued Finex Inc - the company behind stablecoin Tether and Bitfinex for hiding loss of $850 million. Allegedly, the massive loss was covered by Tether’s cash reserves. Nevertheless, the bullish momentum remains in place as confirmed by subsequent price gains of Bitcoin. From a technical point of view, the psychological $6000 has been cracked but now the question is if the price can move forward without a pullback. The $6000 served as a strong level in 2018 and if sellers are to re-enter, this could be their best place to do so, technically speaking.  

Bitcoin trades near the key $6000 level. Source: xStation5.

In spite of Bitcoin rally, altcoins have not fare too well recently. Litecoin is a perfect example as its price moves have diverged significantly with the ones of Bitcoin. Litecoin failed to break above the upper bound of the descending channel. Note that the area was additionally strengthened by resistance level at $79,895. With both Bitcoin and Litecoin trading near the upper limits of their channels one cannot rule out that sellers will become more active in the days to come.

Litecoin took quite a significant dive lower when Bitcoin kept rising. Source: xStation5.

Facebook close to launching its own cryptocurrency

It's not a secret that Facebook is working on its own cryptocurrency. Facebook coin would be a stablecoin, with a value pegged to a basket of foreign currencies. According to the Wall Street Journal, the social media giant is currently “recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system.”  Allegedly, Facebook has spoken with companies such as Visa, Mastercard and First Data. The coin could be used on a daily basis and Facebook's users might be rewarded with “fractions of a token” for viewing ads. This is another sign of attractiveness of blockchain technology, although it does not need to be beneficial for existing cryptocurrencies in a longer term.

Institutional investors appealed to Bitcoin

According to Bloomberg, Fidelity Investments - one of the biggest financial services firms in the world will offer cryptocurrency trading within a few weeks. The service will be offered only for institutional investors. Fidelity Investments set up a test platform at the beginning of March, where customers were able to trade on Bitcoin market.  Additionally, the company conducted a survey of interest in Bitcoin among institutional investors. According to the survey, which questioned 441 institutional investors from November 2018 to February 2019, 57% of respondents were interested in getting exposure on the digital assets market by buying cryptocurrencies directly rather than through investment products.

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