Home Cryptocurrency Bitcoin Bitcoin faces strong resistance above 8,000 USD mark

Bitcoin faces strong resistance above 8,000 USD mark

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Bitcoin fluctuates near 8,000 USD mark after last night touched 8,200 USD for a while. However, the cryptocurrency hardly succeeded to defend the key threshold and fell back to 7,940 USD, as of 06:45 a.m. ET1.

Among the main support news for the Bitcoin was that Facebook has set up its secretive cryptocurrency and blockchain project, Libra, in Switzerland. According to Geneva’s commercial register, the social media giant filed the registration papers on May 2, with plans to provide financial and technology services – and also develop hardware and software.

Such news still keeps the price of Bitcoin high and bulls remain on the market. However, massive sell-offs appear at a level slightly above 8,000 USD. Bitcoin price is on track to having its second-best quarter since 2014 with a 92% gain within two months if it remains above 8,000 USD by the end of June.

bitcoin price

Since April 1, in about a month and a half, the Bitcoin price has increased from 4,100 USD to 8,000 USD, by nearly two-fold against the US dollar.

Industry executives suggest that the new rally of crypto assets is likely to be led by institutional investors.

Previously, investors and strategists including BlockTower co-founder Ari Paul stated that they may have been overly optimistic on the entrance of institutional investors in the past few years.

Crypto market recap

Crypto markets have held on to their weekend gains as Bitcoin remains buoyant. The correction that never was ended in early Sunday trading when Bitcoin surged back towards 8,000 USD.

Today crypto market capitalization remains close to 250 billion USD but a big regulatory decision due tomorrow could create some big moves soon.

There is very little movement in the top ten at the time of writing, as most of the digital currencies are trading slightly into the red, correcting from yesterday’s double-digit gain.

Ethereum is down by 2.5% to 250.90 USD, while Ripple’s XRP fell by 2.11% to 0.39823 USD. Meanwhile, Bitcoin Cash, EOS and Litecoin inched lower by 0.86%, 1.47%, and 2.59%.

The top twenty has more red than green during Asian trading this morning. Only Dash is pumping as 9% to 166.50 USD. South Korean markets are getting the majority of Dash trade at the moment as Bithumb is top exchange. Monero has made 3 percent but the rest are in decline.

Facebook works on secret crypto project

The social network Facebook continues to be the focus of the crypto community, with recent reports suggesting that the giant has created a crypto company in Switzerland.

Registered in Geneva on May 2, the company is named Libra Networks and its name correlates with Project Libra on Facebook. Facebook has not revealed yet official information about this company.

The Libra project is supposed to launch a stablecoin payment system. According to unconfirmed information, the company plans to develop its own “stable cryptocurrency” coupled with the US dollar. It is believed that Facebook is in talks with financial companies and players in the field of e-commerce and payments, such as Visa and MasterCard, to support its payment services.

Financial regulators vs cryptocurrencies

And while technology giants are increasingly embracing cryptocurrencies, the European Central Bank again criticizes digital money, in unison with other central banks around the world.

“Crypto-assets do not fulfil the functions of money and, at the current stage, neither do they entail a tangible impact on the real economy nor have significant implications for monetary policy”, says a recent report by the ECB. “Very low number of merchants that allow the purchase of goods and services with bitcoins indicates no influence of the most prominent crypto-asset on price-setting”, adds the report.

The report concludes by highlighting the potential for cryptos to become disruptive to the European economy as the market grows and their use becomes more widespread