The bitcoin price is rapidly approaching $11,000 following Facebook’s announcement that it would be launching its own cryptocurrency in 2020, demonstrating a return to enthusiasm for the cryptocurrency market.

Bitcoin hit an all-time high of $19,783.06 in December 2017 as hype surrounding the cryptocurrency reached fever pitch, however it then saw a significant slump in 2018, ultimately falling below $4,000 in early 2019.

Nevertheless, the cryptocurrency is now rallying as mainstream players from both finance and technology begin to demonstrate confidence in the technology, and – as predicted – Facebook’s announcement of its Libra cryptocurrency has become the latest sign that the technology is here to stay, driving investment in bitcoin upwards.

“Bitcoin has settled well above $10,500 and is close to solidifying in the $11,000 figures, as investors once again scrambled into crypto assets propelled by newfound confidence in digital currencies thanks to Facebook’s entry in the space,” said Christel Quek, co-ofunder of BOLT.Global.

“Investors are scrambling back into crypto assets such as bitcoin and other alternate tokens, over optimism that they are becoming widely accepted and adopted by mainstream entities.”

Bitcoin price rises over mainstream acceptance of digital currency

A number of announcements over the past few months have indicated a growing mainstream acceptance of cryptocurrency, including JP Morgan’s plans to introduce its own in-house digital currency. However, Facebook’s plans have been particularly key to driving up the Bitcoin price due to the sheer scale of Libra’s potential reach.

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“Facebook’s entry into the crypto space perhaps signifies the biggest network potential for digital currencies, capable of reaching into billions, and therefore indicates an upcoming shift in mainstream finance,” said Quek.

The impact has also been felt by other cryptocurrencies.

“This positive sentiment has also helped other alternative currencies including litecoin, ethereum and the BOLT token,” she added.

“At BOLT, we are encouraged by the market responses and Facebook’s entry into the crypto currency space. This may see further revival and growth of digital tokens this year, as more developments emerge.

“I wouldn’t discount a degree of volatility of course, as hobbyist investors engage in profit taking and perhaps governments attempt to legislate digital finance.”

Cryptocurrency legislation ahead

This legislation, Quek argued, is likely to become increasingly widespread in the next few years.

“After the lessons from the freeze of 2018, this second revival of crypto assets, especially since Facebook’s entry into the space, will likely attract government interest to regulate and legislate,” she said.

“Governments this time will likely be favourable to digital currencies as they now understand that this is the future of finance – their utility is founded on legitimate operational models seeking to empower users and is backed by mainstream industry and businesses.”

Read more: Facebook cryptocurrency Libra “another nail in the coffin for banks”: deVere CEO