The crypto community took a massive hit a few days ago when the news of President Biden’s capital gains tax escalation hit media. Following the news, the stock market and the crypto markets went down side-by-side. Another jolt passed in the market when it became known that Tesla had liquidated about 10% of its Bitcoin holdings during Q1. When Bitcoin went down, the rest of the altcoins followed the suit. As Bitcoin was trending at $48K, the market bears were getting ready to enter the market.
However, Bitcoin managed to regain some of its momentum by restoring to the $54K mark. The crypto experts and analysts were certain that the market needs to stay afloat at $60K to register itself as a safe mode of investment. Then the market was rejuvenated by some good news coming from a crypto influencer Twitter feed. Alistair Milne made unsubstantiated claims that Facebook has been secretly investing in Bitcoin.
Fox News Endorsing the Rumors that Facebook had Invested in Bitcoin
Facebook has been trying to launch its own stablecoin Libra for quite some time. However, the Libra launch was met with a lot of friction from the regulatory authorities and legal challenges. Now Facebook is planning to launch a new stablecoin in the market called Diem. As soon as the social media corporation gets approval from the concerned authorities, it would introduce it into the markets.
Considering the corporation’s recent history, it seemed quite believable that Facebook has been raising stakes in Bitcoin. The company itself was a very new and unique concept at the time of its launch. Another important factor that made people believe in these rumors was that Fox News had also reported the rumors during prime time. Today, it has become apparent that there is no mention of Bitcoin in the Facebook Q1 earnings report.
The rumors about Facebook secretly investing in Bitcoin had the same effect on the market as Tesla’s purchase of flagship crypto earlier this year. Since Facebook is termed as the largest social media platform in the world, its association with Bitcoin would have increased the popularity of the cryptocurrency by many folds.
From the point where these rumors were circulating in the markets, Bitcoin climbed up about 2.6%. However, when the rumors were confirmed to be mere smoke, the flagship coin went down from $56,500 to $54,000. The possibility of Facebook investing in Bitcoin cannot be ruled out entirely. It is also true that its new stablecoin, Diem, would enter the market as a direct antagonist to Bitcoin.