- Bitcoin Hits Highest Price this Year, Above $10,000, as Fed Chair Powell Discusses Cryptocurrencies
by Arjun Kharpal@ARJUNKHARPAL, https://www.cnbc.com/
* Bitcoin hit $10,489.78, the highest price it has logged since September 2019.
* Bitcoin has seen a more than 44% increase from the start of the year and also logged its best January performance in seven years.
* Industry participants attributed uncertainty around the coronavirus as well as recent comments by Federal Reserve Chair Jerome Powell to bitcoin’s rise in the past 24 hours.
Bitcoin hit its highest level this year and also in five months on Wednesday, jumping above $10,000 and continuing the recent bull run for the cryptocurrency. In the early morning on Wednesday, bitcoin hit $10,489.78, the highest price it has logged since September, according to data from Coindesk. That’s a more than 44% increase from the start of the year. It comes after bitcoin logged its best January performance in seven years.
Industry participants have attributed a number of factors to the rise of bitcoin, including some investors viewing the cryptocurrency as a sort of safe-haven asset in times of uncertainty.
In his testimony in front of Congress on Tuesday, Powell was asked about central bank digital currencies and the Fed’s view on a digital dollar. He acknowledged that Facebook’s Libra project was a “wake-up call” that a digital currency could come “fairly quickly” and in a way that is “quite widespread and systemically important.” But he said that there are still “many questions that need to be answered around digital currency for the United States.”
Libra has faced backlash from politicians and regulators around the world concerned that a private company with over 2 billion users could issue a currency. A number of Facebook’s partners have also dropped out of the project. There have been growing calls for the U.S. to issue a digital dollar particularly as China has acknowledged that it’s working on a digital yuan.