Facebook joining the space has had a positive impact on other currencies, with bitcoin rising by 30 per cent since Facebook’s announcement. The price of bitcoin peaked at $18,504.02 Australian per coin before falling after a crash of US-based cryptocurrency trading platform called Coinbase.
Apollo Capital’s co-founder and CIO Henrik Andersson believes the price will remain bullish into the future.
In less than one year, bitcoin’s supply will be cut in half to 6.25 new bitcoins per 10 minutes, according to Mr Andersson. Due to the positive impact of Facebook joining the cryptocurrency space, as well as a lowering of supply, Apollo Capital predicts a positive impact on price.
Mr Andersson believes this caps off a positive six months for the currency, with JP Morgan launching its own crypto, Fidelity trading in the commodity and Cambridge Associates releasing its first report on the asset.
Mr Andersson believes central banks globally are going from tightening to loosening lending, which has lead to a rally in hard assets, including bitcoin.