Bitcoin has been on a tear lately. The cryptocurrency is up more than 60% in the last month, and is now trading above $11,000.
That’s a new all-time high, and a level that few people would have thought possible just a few months ago.
So, what’s behind Bitcoin’s recent price surge? Let’s take a look at some of the most likely factors.
Increased institutional interest
One of the big stories in the financial world lately has been the increasing interest in Bitcoin from institutional investors. Companies like Square and Tesla have invested billions of dollars in the cryptocurrency, and mainstream financial firms like Goldman Sachs are beginning to offer Bitcoin products to their clients.
As more and more institutional money flows into Bitcoin, it’s only natural that the price would go up. After all, there’s only a limited supply of Bitcoin, so when demand increases, prices are bound to rise.
The ‘ Biden effect’
Another factor that might be driving up Bitcoin prices is the so-called “Biden effect.” With Joe Biden set to become the next US President, there are expectations that he will pursue policies that are friendly to the cryptocurrency industry.
This could include things like easing regulations or providing tax breaks for companies that deal in cryptocurrencies.
With a Biden administration looking increasingly likely, investors are betting that it will be good news for the crypto world, and that is helping to drive up prices.
Fears of inflation
Finally, one of the key reasons why Bitcoin is going up so much is because investors are worried about inflation. With central banks around the world pumping billions of dollars into the economy to fight the pandemic-induced recession, there are concerns that all of this new money will eventually lead to higher inflation rates.
Investors see Bitcoin as a hedge against inflation, because its supply is limited (unlike fiat currencies), so they are buying it up now in anticipation of prices rising down the road.
So there you have it: three reasons why Bitcoin is going up so much lately. Of course, it’s always possible that the price could come crashing down again (as it has done many times before), but for now at least, it seems like crypto’s bull run is far from over.
9 Related Question Answers Found
When it comes to Bitcoin, we’re in the midst of a price surge not seen since the famous bull run of late 2017. Below, we outline the underlying conditions driving Bitcoin’s price increases now, and explain some of the key ways they differ from the conditions of 2017. Bitcoin’s price is rising because demand for Bitcoin is increasing at a time when there’s relatively few Bitcoin available to buy.
Bitcoin has seen a surge in interest and investment over the past year. This has led to a corresponding rise in price. But what is causing Bitcoin to rise?
When you want to buy Bitcoin, you will notice that there is a spread. The spread is the difference between the buy and sell prices of Bitcoin. When you buy Bitcoin, you will pay more than the current market price.
When it comes to cryptocurrency, Bitcoin is king. The original cryptocurrency has been around longer than any other and has the largest market cap by far. There are plenty of other digital currencies out there, but none of them have been able to achieve the same level of popularity as Bitcoin.
When it comes to Bitcoin, there are a lot of misconceptions out there. People often think that Bitcoin is just a digital currency, used to buy and sell things online. However, there is a lot more to Bitcoin than meets the eye.
Bitcoin is often lauded as an innovative breakthrough in the digital age, and for good reason. The cryptocurrency is decentralized, global, open-source, and borderless. But what exactly is Bitcoin, and why does it have any value?
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
When you make a transaction with Bitcoin, that transaction is sent out into the network and broadcast to all of the nodes. Each node then verifies the transaction (makes sure the person sending the Bitcoin has the Bitcoin they’re trying to send, and that they haven’t already sent it somewhere else), and then they add it to their own personal copy of the blockchain. Once your transaction has been verified by a node, it will sit in that node’s memory pool (or mempool for short).
