On Jun. 26, Bitcoin (NASDAQ:GBTC) traded close to $13,000 on excessive optimism. Facebook’s (NASDAQ:FB) entry into the cryptocurrency space created a positive momentum shift. Bitcoin broke out from its $7,500 - $8,000 U.S. range that began in May. What happens after crypto fell briefly below $11,000 on Jun. 28 but then recovered back to $12,000?
Bitcoin is like gold or any other currency. Its valuation is tied to sentiment. And sentiment keeps shifting. After the strong rebound, speculators will start betting again on a resurgence. It is very possible that the crypto returns to the over $15,000 top reached at the end of 2017. At that level, anyone who held at the top will sell just to break even.
Fundamentally, Facebook’s implementation of crypto in its social network is a positive development. Higher liquidity and availability helps increase its store of value. Still, the actual value will keep fluctuating wildly until Facebook enters the market.
Yet Facebook has a Senate panel hearing on July 16. This event is both a challenge and an opportunity to educate the Senate Banking Committee. If anything, Facebook could reverse the skepticism governments have over cryptocurrency.
