Why cryptocurrency prices suddenly skyrocketed?
Cyptocurrency analysts have been closely looking for the cause of the sudden price spike of Bitcoin, Ethereum, Ripple’s XRP, and Litecoin, which added around $30B to the total value of the world’s cryptocurrencies over just two days.
The media refers to multiple two potential reasons for the spike. First, is Facebook’s new criptocurrency (Libra) announcement earlier this month. Second, is India government’s decision to crack down on some of the internet services.
While Facebook’s decisions to enter into the cryptocurrency world seems like a positive and promising move, it’s obvious that high premiums for crytocurrencies currently observed in India may also have a significant impact.
In addition, there is an increasing consensus among the investment community that cryptocurrency is a legitimate store of value for the digital age, when all of us are becoming more and more hyper-connected.