Bitcoin soars above $11,000

Pedro Gonçalves
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Bitcoin soars above $11,000

Bitcoin surged above $11,000 on Monday hitting a more than 15-month high, extending recent gains as the cryptocurrency benefited from sustained momentum.

The world's largest digital currency by market value climbed more than 250% from its local low of $3,122.34 reached in December, CoinDesk figures reveal.

In a major strategic shift for the social network founded by Mark Zuckerberg, Facebook took aim at Bitcoin last week with plans for its own digital money.

Bottom line: Crypto winter looks over"

Experts say that Facebook's recently launched Libra cryptocurrency is one of the main reasons for Bitcoin's surge.

Last week, one bitcoin analyst predicted that prices could hit $40,000 "in a few months" now that the $10,000 level had been cracked. "Bottom line: Crypto winter looks over," Fundstrat's Thomas Lee said.

"The price surge is due to two major factors, one is an increasing consensus among the investment community that bitcoin is a legitimate store of value for the digital age, and two Facebook's Libra cryptocurrency launch has forced every CEO to take crypto seriously," Jehan Chu, co-founder of Kenetic Capital, an investor in blockchain start-ups told CNBC.

Thousands of digital assets have been created over the years, but bitcoin is still the largest, with its total market cap surpassing $190bn.

 

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