Bitcoin Price Treads Water Following Facebook’s Crypto Reveal

Bitcoin’s price hovered within a narrow range on Tuesday, as traders weighed the official launch of Facebook’s new centralized cryptocurrency that, all things being equal, is expected to bring greater attention to digital assets and blockchain technology.

BTC/USD Update

The bitcoin price traded between $9,029 and $9,361 on Bitstamp before consolidating at the lower end of the range. At press time, the BTC/USD exchange rate was valued at $9,128, having dropped 2.2% from the prior session.

The modest pullback was expected given bitcoin’s recent breakout, which pushed prices closer to $9,400. At 65, the daily relative strength index (RSI) remains firmly on the side of the bulls for now.

Bitcoin price
Bitcoin (BTC/USD) sees modest pullback following weekend rally. | Source: TradingView.

Over the 24-hour cycle, bitcoin’s price was down just 1%, according to CoinMarketCap.

Bitcoin’s share of the cryptocurrency market has improved over the past week, reaching 57.3%. On Monday, cryptocurrencies as a whole approached a market cap of $290 billion for the first time in nearly a year. Read more: Crypto Markets Approach $300 Billion with Large Caps Set to Rise.

Facebook Debuts Libra

After months of speculation, Facebook has finally revealed the details of its highly-anticipated Libra cryptocurrency. In a lengthy whitepaper that appeared on libra.org Tuesday, Facebook said the Libra blockchain will “serve as a solid foundation for financial services, including a new global currency, which could meet the daily financial needs of billions of people.”

The whitepaper says Libra has been “designed from the ground up” to address issues related to scalability, data security and flexible governance. It is being designed using a new programming language called Move and the Byzantine Fault Tolerant (BFT) consensus method.

Despite speculation to the contrary, Facebook’s new cryptocurrency is no bitcoin killer. Leading crypto evangelists like Andreas Antonopoulos have even argued that Libra isn’t even a real blockchain because it lacks the core technical and philosophical underpinnings of projects like bitcoin.

That being said, most in the crypto community are of the belief that Libra will be a net positive for the ecosystem because it will force average users to think about cryptocurrency and the role of both retail banks and central banks as gatekeepers of the financial system.

As The Rhythm Trader added, “Facebook’s Libra will cause people to question the properties of the U.S. Dollar and how the banking system works. In his view, this will only lead people toward bitcoin.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via TradingView.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi