Bitcoin touches $13,000 level as rally continues

Bitcoin extended its rally on Wednesday in Asia. The digital coin has now gained over 15% in the past seven days.

Bitcoin gained 2% to $12,942.7 by 12:31 AM ET (04:31 GMT). It rose to as high as $13,088 earlier in the day.

The gain in Bitcoin prices came after David Marcus, co-creator of Facebook’s Libra, wrote a letter to the House Financial Services Committee ahead of the upcoming hearings for the tech giant’s proposed launch of Libra.

“I want to give you my personal assurance that we are committed to taking the time to do this right,” Marcus wrote.

Chairwoman of the House Financial Services Committee Maxine Waters wrote a statement last month to express her concerns about Libra.

“Given the company’s troubled past, I am requesting that Facebook (NASDAQ:FB) agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”

Despite the news, Bitcoin has soared from as low as $7,700 in early June to just over $13,000 this week.

Ongoing institutional demand could be the key for the next upward higher, said Edward Moya, chief market strategist at Oanda Corp. in New York.

“Bitcoin looks like it could be coiling for a big breakout as institutional interest for blockchain technology shows no signs of slowing down,” said Moya. “The bubble-like gains this time are driven on solid institutional interest and while security is still a big risk, it appears Bitcoin has overcome many of its initial growing pains.”

Other cryptocurrencies traded lower today. Ethereum was down 1.5%, XRP dripped 2.9%, while Litecoin lost 3.3%.