The price of Bitcoin is heading to $13,000; many commentators believe the ongoing price surge is boosted by the marktet enthusiasm surrounding the Facebook's ambition in the cryptocurrency field. Facebook is not an ordinary player in the cryptocurrency world and it is one of the leading tech companies in the world. This definitely gives the cryptocurrency believers a lot more confidence. Moreover, some people think that some investors begin to use more cryptocurrency as a safe asset to counter the highly uncertain global political and economic environment instead of the traditional gold reserve.
However, as I mentioned previously, Facebook's plan about its cryptocurrency, Libra, makes it different from the traditional cryptocurrencies. The value behind Libra is based on fiat money that Facebook plans to use low risk assets including the US Treasury bills and deposits of various currencies as reserves to back Libra. Therefore, the value of Libra does not necessarily reflect the values of other cryptocurrencies. Furthermore, the uncertainty in the world is about a process of deglobalisation. The ideas of globalisation and removing borders are the same as the ideas supporting the cryptocurrency; therefore, a process of deglobalisation should potentially reduce the value of cryptocurrency.
Overall, I do not think that there is any fundamental factor change behind the rise of Bitcoin price.
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