Assets, Bitcoin

Why Is Bitcoin Going Up So Much?

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.

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