5 Reasons Bitcoin is Trading at Yearly Highs

On Sunday bitcoin rallied above the major level of $9,000, reaching its highest price since May of 2018. The world’s largest cryptocurrency by market cap is now up by more than 22% over the past 30 days and over 140% in 2019. Despite the recent surge in price, bitcoin remains well below its all time high of over $19,000 reached in late 2017.

Let’s take a look at some of the recent news that has helped to push the price of bitcoin higher:

  • Facebook is creating its own cryptocurrency called GlobalCoin and code-named Libra. GlobalCoin has reportedly secured backing from Uber, Spotify and Visa. The new coin would allow users to make payments both on Facebook and other sites.
  • Bitcoin advocate and Twitter founder Jack Dorsey confirmed last week plans for a new team dedicated to improving the cryptocurrency initiative at his payments company Square.
  • Some investors are anticipating a “supply shock” with the bitcoin halvening event in 2020 which will see the daily bitcoin supply cut by half overnight.
  • The Bakkt cryptocurrency exchange, backed by the Intercontinental Exchange and Starbucks is reportedly scheduled to start testing their bitcoin futures product on July 22.
  • In May AT&T announced that customers can now use cryptocurrency payment processor BitPay to pay online bills.

The Bottom Line

After a devastating 2018 that saw price drop by 70%, bitcoin has made a remarkable comeback this year. With price trading above the $9,000 mark, investors now eye the key $10,000 psychological level.