The price of bitcoin broke $9,800, its highest level in more than a year, as the Federal Reserve signaled more interest rate cuts and Facebook rolled out details of its faux-cryptocurrency project, Libra.
Bitcoin peaked above $18,000 in late 2017 before losing 80% of its value and bottoming out in December of last year. Bitcoin has now more than tripled its price from that low.
Thomas Lee, co-founder and head of research at Fundstrat, spoke to CNBC and said, “I think bitcoin ultimately becomes a reserve currency in crypto, bitcoin at $9,000 has only been at this level in four percent of its history. We’re deep into a bull market and people are pretty silent about it. I think bitcoin is easily going to take out its all-time high.”
Bitcoin has more than doubled in price since April, in two months going from $4,310 to $9,800.
Among Bitcoin analysts, the ‘hash rate’ of the cryptocurrency is an important sign which has skyrocketed, setting a new all-time-high. The ‘hash rate’ is the bitcoin network’s processing power.