Why is the price of Bitcoin rising (Why is Bitcoin skyrocketing)?

Why is the price of Bitcoin rising? Bitcoin recently broke the psychological barrier of $10,000, which is a significant positive for the market. In the past few days, the price of Bitcoin has been closely related to other aspects of the cryptocurrency market: most other asset classes have been rising along with Bitcoin. However, due to the influence of various factors, there has been recent volatility, and Bitcoin is now seen as a safe investment choice – as a means of value storage and medium of exchange. “Why is the price of Bitcoin rising?” Despite various controversies, Bitcoin remains an important component of asset classes. As many have pointed out, “If we look back at history, we will find that Bitcoin has never fallen”. Bitcoin has surpassed gold as an attractive asset type and “it has great potential” for various purposes.

As investors continue to buy and hold digital currencies, this new global reserve asset is on the rise, and this trend will occur as other investment products begin to enter its ecosystem. “If an asset can maintain its value steadily and without collapse in the long term, it will benefit from higher returns,” said Ryan Selkis, CEO of crypto analytics company Messari. He also added, “Bitcoin is currently in a very advantageous position because its growth rate is much faster than ever before.” There are many reasons for the surge in Bitcoin prices: 1. The significant increase in the price of Bitcoin.2. The increasing interest in Bitcoin, which is one of its major characteristics.3. The increase in transaction volume on the Bitcoin network, as well as more and more exchanges accepting Bitcoin payments. These may indicate that the demand for Bitcoin will continue to grow. Additionally, as Bitcoin and other cryptocurrencies become more popular, the demand for the crypto field may continuously increase.4. “Bitcoin is a scarce and volatile thing,” “It is a technical and highly customizable technology that helps ensure the reliability and integrity of economic activity in the coming years.”5. “Ethereum 2.0” may be one of the examples.

Why is Bitcoin skyrocketing?

Editor’s note: This article is from Fengchao Finance News (ID: fengchao-caijing), author: Kyle, authorized reprint of Odaily Planet Daily.

After reaching $53,000 on June 18, Bitcoin began a crazy uptrend and is currently hovering between $50,000 and $60,000. In the past two months, Bitcoin has experienced a strong increase in value, breaking through the $52,000 mark and reaching nearly $70,000 at one point.

Why is this a bull market? Because the market sentiment has changed in recent weeks. According to data from Coinmarketcap, as of the time of writing, the 24-hour trading volume of Bitcoin exceeded $1.47 billion, reaching a new high. The average daily trading volume of Ethereum and Litecoin is close to 10 million BTC (data source: coinmarketcap). In addition, Ethereum’s on-chain data shows a large number of new addresses actively participating in Bitcoin mining. As of November 19, 2020, Ethereum Classic’s network hashrate reached 18.2 EH/s, an increase of about 10% compared to noon on December 17, ranking eighth. According to Non-small data, as of 9:50 a.m. on October 16, the average block reward of the Bitcoin network was 12.54 ETH.

Based on the previous range of Bitcoin prices, whenever there is a significant change at the bottom of a range, it attracts investors’ attention. Therefore, this time Bitcoin has risen very violently, and without institutional funds entering, it is difficult to have such a strong support force again. Therefore, many investors believe that with the influx of cryptocurrency exchanges, the continuous increase of assets within the exchanges, and the impact of tightening regulations, this time will open another bull market or it is just a short-term adjustment. However, the trend has not changed.

First, let’s take a look at the price of Bitcoin since the beginning of this year. It has been in a fluctuation range, but it is not like in 2017 when the highest price of Bitcoin reached above $12,000 and then fell to below $5,000. However, due to the previous sharp drop causing panic selling, many investors chose to wait and even buy at the bottom, leading to a significant price drop.

Secondly, from the historical performance, from the second half of 2020 to the present, the price of Bitcoin has fluctuated greatly and has shown a “doubling” trend. Fortunately, at the end of last year, Bitcoin was still seen as a safe haven tool, and in this bull market, its trend did not quickly fall back or slow down.