As bitcoin's price is steadily rising and inevitably gonna pass the all time high Everyone wants to know what are the key reasons to this rise and what is the difference between this and 2017's bull run.
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There are a multitude of reasons for Bitcoin’s price rise. Investment from large institutions like MicroStrategy have led the way, as have major companies like Grayscale managing Bitcoin for their own clients. What’s more, it’s now easier to buy Bitcoin since PayPal began letting people buy and sell Bitcoin.
Here are the top 5 reason that I could think of for bitcoins price rise
Big companies buying bitcoin
Big multinational company like Microstrategy and squares investment in bitcoin. Just so u should know Microstrategy invested around $425 million in btc and not only that it is using those btc for treasury not just in their portfolio view. And they are looking to buy more.
Not only MicroStrategy, twitter CEO jack doshi's payment service company square bought $50 million in btc.
Since these investments, MicroStrategy and Square have made significant profits of 46% and 53%, with each company’s Bitcoin now worth $620 million and $76 million respectively.
Positive Support by Public
More and more regular users and big companies like JPMorgan publicly praised the bitcoin.
While JPMorgan's CEO in the late 2017 said that bitcoin is a fraud, his views changed now. This October, the investment bank said Bitcoin is solidly competing with gold, and that “the potential long-term upside for Bitcoin is considerable.”
Not only big companies praising bitcoin more and more regular people are getting more know-ledged about cryptocurrency in general and more people have started to invest in bitcoin.
Grayscale investment
Grayscale Investments, an asset management company, is at the forefront of providing custodial services for wealthy Bitcoiners.
Grayscale investment alone has purchased over 40,000 btc over the last few weeks. Not only that a total of over 85,000 bitcoin has been bought by both Grayscale investment and CashApp. In the same period only 1,45,000 bitcoin was mined.
These figures are prompting concern that Bitcoin will soon be in short supply, as such massive amounts of the cryptocurrency are being snapped up by wealthy investors and giant companies, rather than any average buyers.
Bitcoin Halving
Bitcoin halving takes place every four years and it significantly impacts the price of bitcoin. For those of u who don't know what bitcoin halving is as bitcoin has only fixed supply every 4 yrs the no of new coins mined by miners will be cut and will be reduced on the following yr which means from may onwards only half as much bitcoin was created then in the previous month.
With less amount of bitcoin mined everyday less amount of bitcoin will be available for purchase by exchanges and every other people out there. Reduced supply also increases the price of the bitcoin.
Paypal
This multinational company alone boosted the growth of bitcoin even further. There is a reason for it because PayPal CEO has always been skeptic about bitcoin and yet the International Payment Giant out of the blue announced that it will launch cryptocurrency buying and selling feature on its platform.
It is huge boost to crypto market as regular everyday people who doesn't know even what is a cryptocurrency has given a place to learn abt it. And it leads the way for crypto currency to mass adoption.
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