Bitcoin Rallies on Facebook’s Libra Reveal, Government Sentiment

The extremely buoyant price has brought investors out of the woodwork and made Bitcoin national news again. A host of opinions regarding what has led to the price jump have surfaced, and most are focused on Facebook’s Libra.

Not a Government Favorite

The news of Facebook’s Libra was met with mixed reviews from both industry insiders and lawmakers. In spite of the potential for use, government officials have called on Facebook to halt progress. Most cite a lack of government awareness and feel Libra could create unknown risks. In spite of being a liberal golden child, Zuckerberg has met with opposition — even from the likes of Democratic California Senator Maxine Waters, who said:

“We’re going to move aggressively and very quickly to deal with what is going on with this new cryptocurrency. I think it’s very important for them to stop right now what they’re doing so that we can get a handle on this.”

But Bitcoin…

However, even as the government seeks to control the new corporate coin, new users are finding out more about Bitcoin. While government might not love Libra, Bitcoin’s autonomy makes it a better, decentralized solution. In this way, Libra is becoming a sort of evangelist mechanism for new users in Bitcoin. This movement of adoption is strongly bullish for the original cryptocurrency. According to Susquehanna’s digital asset group leader Bart Smith,

“It’s clearly a positive for bitcoin. If 2 billion users are on Facebook, some percentage of them start to kind of look at Libra and try to understand how it is different and similar to bitcoin — that is a positive.”

Fear and FOMO

Additionally, the market has been influenced by the widespread anxiety about the economy and trade wars. Even as Trump’s trade war with Mexico took a positive turn, rhetoric about China and Iran is still worrisome. With the uncertainty entering legacy markets, investors have sought to enter into ‘safe-haven’ assets that are not tied to government decision making. These include gold, commodities, and, now, Bitcoin. As the market moves into Bitcoin positions and prices increase, so too does the fear of missing out (FOMO) that drove the previous bull market to $20,000. This activity only increases the potential of positive adoption cycles and will likely maintain the bullish spirit into the longer term. Do you think Libra’s difficulties with lawmakers will drive investors into Bitcoin, ultimately, or will Facebook find a way to success through the bureaucratic red tape? Let us know in the comments below!