Make Kitco Your Homepage

New Facebook Digital Coin Could Spark Next Crypto Rally, According To Patterns

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Facebook is entering the crypto-space with the roll-out of its latest venture, 'Libra' later this week. The platform could provide the embattled social media giant with a new revenue stream of tremendous proportions, but could it destroy bitcoin in the process?

"I find it very significant that bitcoin peaked at the launch of the CME Futures contract but bottomed literally when JP Morgan knocked bitcoin," Frank Holmes, chief executive officer of U.S Global Investors and the chairman of HIVE Blockchain Technologies (TSX/V: HIVE) said on Monday. "And Facebook [during this time] stopped all marketing of bitcoin and cryptos as they were building out their own currency."

Mark Zuckerberg’s company is expected to provide details about its cryptocurrency, Libra, in a white paper set for release Tuesday. Reports suggest the new digital coin will allow Facebook’s base of more than 2 billion users across Facebook, Instagram and WhatsApp to transfer money and purchase goods without fees.

Facebook’s venture into digital currency markets comes as investor interest jump back into the marketplace. The bitcoin price hit $9,021.65 on Tuesday, the last time the digital coin hit a level as high as $9,000 was May 2018. It is up 140% since the start of the year.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.