New NFT Collections
06 May 2021

Why Bitcoin is Going Up

Bitcoin hits an all-time high price of $64,000 within weeks after breaking the $40,000 mark. Over the recent past, Bitcoin's price has been going up. And this prompts both newbies and pros to ask why the price of this cryptocurrency is always going up. Will the cryptocurrency eventually crash?

Satoshi Nakamoto invented Bitcoin more than a decade ago. The creators wanted to make a new electronic payment or funds transfer system. The basis of this digital currency is an internet-based computing network with no government, company, or individual controlling this network.

But, Bitcoin has a short trading history. What's more, the asset valuation methods for this digital currency are largely untested. Most people don't know what the worth of this cryptocurrency will be in the future. But this has not prevented digital-asset investors from going for this cryptocurrency. Analysts' forecasts for this cryptocurrency speculate that Bitcoin price will soon range between $100,000 and $400,000. Here are the key reasons why Bitcoin is always going up.

Increasing Institutional Buyers

The demand for this cryptocurrency among institutional buyers is increasing. Most of these buyers are eyeing Bitcoin as an excellent hedge against potential inflation. Many people see Bitcoin as a hedge against likely inflation since, under its original programming, the world can have 21 million bitcoins only. And this contrasts with the central banks whose reserves are subject to governments' decisions to produce more money.

Even key asset managers have wagered on Bitcoin price or announced purchases. These managers use futures contracts and exchanges like Bitcoin Prime to trade this cryptocurrency. Like those of JP Morgan, analysts have predicted that Bitcoin price will eventually hit the $146,000 mark and above.

The Decline of the U.S Dollar in the Foreign Exchanges

The index of the U.S Dollar, the currency that people use to gauge world currencies value, dropped in 2021. Essentially, the Bitcoin price is increasing because the U.S dollar denominates this cryptocurrency's price.

Some of the reasons why the greenback has declined include the $3 trillion-plus Federal Reserve of money printing within the last year. And this is about three-quarters of the previously created amount in the central banks of the U.S 108-year history. Protestors have stormed the U.S Capitol expressing their displeasure, but this did not burnish the role of America's leadership on a global stage. Currently, economists predict large democratic government spending plans could lead to the creation of stimulus bills, which could outsize the government's budget deficit in the future. Additional printing of money by the federal government will be required to finance those costs.

Retail Purchases

There has been an increase in speculations about Bitcoin price and the ease of purchasing this cryptocurrency using online platforms. Service providers like PayPal have also announced their acceptance of this cryptocurrency.

According to analysts, blockchain data seems to concentrate on Bitcoin purchases. And this has increased its popularity globally. What's more, the coronavirus pandemic made many people re-think their perception of money. Essentially, the increasing popularity of this digital currency has contributed to its growing price.

Final Thoughts

Bitcoin's price has not fallen below 25% from its high point of the year. And many analysts argue that the cost of this cryptocurrency could even go up to $100,000 or even $200,000. That's because this cryptocurrency's price has constantly been increasing since its inception. However, people should be careful when investing in this cryptocurrency. Ideally, investors should use reliable crypto exchanges and take time to study Bitcoin's trends before investing in it. Looking at the cryptocurrency market is the best approach for determining when to invest in Bitcoin.


(Sponsored Article)

No other news.

3 coins to keep an eye on 👀

Subscribe to receive a weekly selection of 3 coins to watch closely, based on upcoming events and technical analysis.