Blog Opinion The 3 Main Reasons Behind Bitcoin's Rise

The 3 Main Reasons Behind Bitcoin’s Rise

Experts have many theories

-

- Advertisment -

Bitcoin is famous for its volatility, but has been unusually calm in recent months. The digital currency ranged in a close price band of between $9,000 and $10,000 for almost all of the past three months – until last week’s sudden surge.

Last Monday, the price of Bitcoin reached $11,000, up from about $9,100 the week before. This is notable given that Bitcoin has failed to stay above the $10,000 threshold in the few cases where it broke this barrier and has not exceeded $10,500 in almost a year.

So what is causing this new price increase? There doesn’t seem to be a single factor, but several overlapping factors, according to experts.

Eric Turner of Messari Research says cryptocurrency traders make big profits from obscure digital currencies on so-called “DeFi” (decentralized finance) platforms. Turner assumes that many of these brokers have based their profits on the two most important cryptocurrencies, Bitcoin and Ethereum, and are raising the price.

RELATED: Top 10 BEST Crypto Trading Books for New Traders (2020)

Bitcoin prices may also rise thanks to last week’s letter from the Office of Monetary Policy Control, which gives banks the right to hold Bitcoin on behalf of their customers. Many in the cryptocurrency industry saw it as a signal of a rise and predicted it could lead to new investments in cryptocurrencies from large funds.

Another possible reason for the recent price increase is a general sense of fear and uncertainty around the world. Such sentiments could lead investors to seek assets such as gold amid concerns about the pandemic and geopolitical uncertainty. A report from The Block suggests that Bitcoin may be benefiting from the same phenomenon.

Finally, Bitcoin can grow on the basis of fundamental economic data.

None of the above provides a definitive explanation for the latest increase in the price of Bitcoin, and the latest increase could – like so many other rallies in cryptocurrency prices over the years – be temporary.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Top 8 Potential Cryptocurrency Business Ideas for 2021

Which word comes into your mind when you hear or think of the word ‘cryptocurrency’? It might...

3 Important Reasons to Have AML for Cryptocurrency Business

In this article we are going to examine the 3 most important reasons to Have AML for...

Use of Smart Cards in Blockchain App Development

Ever since blockchain technology made a major breakthrough all over the globe, experts and forecasters have been...

IMF: Risk of substitution of domestic money by central banks’ digital currencies

Central banks around the world began looking closely at the issuance of their own digital currencies, known...
- Advertisement -

Ripple: The cryptocurrency that will ‘change’ the world in 2020

Ripple could say he's a child of Bitcoin: In December 2017 Bitcoin hit a record price in...

Spain approves Crypto Holdings disclosure bill from cryptocurrency holders

Spain approves Crypto Holdings disclosure bill from cryptocurrency holders. Spain's government has reportedly approved...

Must read

- Advertisement -

Read Next
Recommended to you