As cryptocurrency fans and Bitcoin investors collectively held their breaths, on Tuesday July 24 the market’s leading brand went above $8,400 for the first time in almost two months. However, isn’t it about time the crypto community addressed the real reason for this latest price rise?
One has to go back almost two months to May 21st to find the last time that Bitcoin was valued at more than $8,400, and yet on Tuesday (July 24) it looked as if it might actually go a step further and climb above $8,500. BTC’s rise has been nothing short of dramatic, but this latest surge really kicked in on July 13, with Bitcoin’s price at $6,229. In eleven subsequent days, it has increased in value by over $2,000.
While some market analysts are attributing Bitcoin’s and the overall cryptocurrency market’s recent rise to an “uptick in interest from institutional investors,” they are once again avoiding the obvious.
Current Market Surge Is Thanks To Facebook
The inescapable facts are that the crypto market – led by Bitcoin – took one almighty nosedive in January of this year when Facebook announced they were to ban advertising featuring cryptocurrency. Overnight, the overall cryptocurrency market cap halved. Bitcoin was valued at over $17,000 in the first week of January, and yet by its end was worth less than $7,000. Worse still, Google and Twitter would soon follow Facebook’s lead, both imposing crypto advertising bans of their own.
The first half of 2018 was – to put it mildly – horrible for the crypto market. Even nailed-on market boosters such as the Consensus Blockchain Conference, this year extended to Blockchain Week, were actually followed by a slump in the market. The ad bans of Facebook, Google and Twitter not only cut publicity for the crypto industry to a fraction, they also brought the market into disrepute, which is extra tough for a business trying to overcome its earlier association with the “Dark Web.”
And then, on June 26, Facebook announced it was ending its ban of cryptocurrency advertising (although it chose not to lift its ban on ICO publicity.) Within 48 hours, Bitcoin – at that point sitting at a 2018-low of $5,871 – began to rally. It’s initial surge was exciting but turned out to be only a precursor for the real thing, lasting ten days and reaching $6,750 before running out of steam and hitting a four-day dip. The real benefit of the Facebook about-turn began on July 13, and BTC’s value has been on an almost continued ascendancy ever since.
Crypto Market Still In Denial
Despite the glaring facts and obvious evidence, few people involved in cryptocurrency – be it owners, investors or writers, will admit either A), how badly the Facebook ban hurt the market and B), how this current encouraging run is down to Facebook ending its ban.
It’s almost as if by admitting such a thing, they are acknowledging Facebook’s power over the industry. Instead, it should not only be acknowledged, the industry needs to collectively tip its hat toward the social media colossal and whisper “thank you!”
After all, they wouldn’t want Facebook to change their minds again, would they?!