Bitcoin (BTC), the leading cryptocurrency by market capitalization has made parabolic moves within the past 48 hours, which has created a year-to-date high of about $9,400. The asset’s surge in price comes in the wake of Twitter and Square CEO Jack Dorsey’s comment that the Square team will foster the global use of Bitcoin as a currency, reports Forbes on January 27, 2020.
Jack Dorsey Shows Confidence in Bitcoin
Per the report, Jack Dorsey is confident that Bitcoin is the future currency. As such, Square Crypto, the cryptocurrency development arm of Square will foster the wide use of Bitcoin as a global currency that can neither be “stopped, tampered with, or rigged”. Also, this high adoption will be made possible by improving Bitcoin’s user experience, scalability, security, and privacy.
In a bid to achieve this goal, Square Crypto revealed that it is developing a Lightning Development Kit (LDK). The latter will provide a flexible way for wallet developers to integrate the Lightning Network into existing Bitcoin wallets, according to the team. As such, this will offer faster payments that could compete with the likes of Ripple’s 3 seconds transfers.
“So rather than create a standalone Lightning node, we’re building a Lightning Development Kit (LDK) that gives wallet and application developers a convenient way to create custom experiences,” Square Crypto wrote.
Bitcoin Breaks $9,000 Resistance, Records Year-to-date High
Bitcoin, on the other hand, surged past its $9,000 resistance, barely days after Dorsey’s comments. As at press time, the crypto asset is priced around $9,336 on the Bitstamp cryptocurrency exchange. Also, the cryptocurrency surged to its year-to-date high of $9,420. And it could potentially break the $10,000 level believed to be a psychological resistance where people tend to dive into the market.
What’s more, several factors have been linked to the leading cryptocurrency’s spikes in January. An instance of this is the coronavirus outbreak in China, which has infected about 4,500 people and led to the death of 106. Reportedly, the outbreak has increased the demand for this asset in the country, since a number of people looking to flee the country fall back on Bitcoin. The reason has been tied to the fact that it lifts the cash travel limit, and can be accessed anywhere.
The expectation of Bitcoin’s Halving in May 2020 Impacts on its Price
Another factor that has contributed to Bitcoin’s surge, is its halving in May 2020, where its block reward will be halved. By that time, 6.25 BTC will serve as a reward per block mined, a decline from the 12.5 BTC. In times past, this event has impacted positively on Bitcoin’s price.