How Long Will Facebook’s Libra Fuel Bitcoin Rally?

Bitcoin at $11,000

We wrote about Bitcoin (BTC-USD) last Monday, a day before the launch of Facebook’s cryptocurrency named Libra. Well, Bitcoin has continued to surge since then.

In the past week, Bitcoin has surged 19% to cross the $11,000 mark, which takes the gains of the most popular cryptocurrency (so far) to 36% over the past month and 77% over the past year. Last week, the S&P 500 gained 2.2%. The SPDR S&P 500 ETF (SPY) gained 1.64% last week. The ETF tracks the S&P 500 Index.

What’s fueling the rally?

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries. Interestingly, payment behemoths like Visa (V), Mastercard (MA), and PayPal (PYPL), whose business is threatened by the emergence of cryptocurrencies, are also part of the founding team.

Other major cryptocurrencies

Ethereum gained 14% in the past one week and 23% in the last one month. Smaller cryptos like Stellar Lumens have seen pricing pressure as major cryptos consolidate their position. Stellar Lumens has lost 1.63% in the past week.