Why is Bitcoin Still Rising (Why Bitcoin Will Continue to Rise)

Why is Bitcoin still rising? There are three reasons: (1) Continued market popularity and influx of funds; (2) Significant rise in mainstream currencies with institutional and large-scale purchases.

In the past few days, Bitcoin has performed exceptionally well. Starting from September 18th, it broke through $20,000 and is currently priced at $24,500. Since mid-March, Bitcoin’s price has been fluctuating around $29,000.

When BTC fell to $30,000, it returned to the range of $40,000 to $35,000 and recently slowly rebounded above $60,000. If we follow historical trends, is 2020 a “bull market” or a bear market? Due to the maturity of the digital asset market and the increasing attention of traditional financial investors towards cryptocurrencies like Bitcoin, investors are turning their focus to the market of encrypted digital currencies.

Therefore, signs of Bitcoin steadily rising and entering a high consolidation phase had already been seen in early 2019. However, this time, it did not rise synchronously with gold or any other underlying asset prices. Instead, it was widely accepted as a new means of storing value and decoupled from many traditional safe-haven tools like gold and silver. Therefore, even if Bitcoin experiences a recent sharp decline or even a downturn, its growth still exceeds 50%.

Of course, besides these factors, there are other significant factors that can affect the cryptocurrency market. For example, US congressmen proposed a bill that requires cryptocurrency exchanges to obtain licenses to operate cryptocurrency exchanges and pointed out the potential risks and regulatory challenges that Bitcoin ETFs may bring. In addition, according to the latest report by the US Securities and Exchange Commission (SEC), as of the end of 2021, approximately 50 companies have obtained licenses as virtual asset service providers. Although these companies do not have the support of large corporations like Tesla, they still believe that the cryptocurrency industry can become one of the most attractive participants in the global economy. (Coindesk)

Why Bitcoin Will Continue to Rise

Today is the last day of 2019, and Bitcoin has once again reached a new high in nearly a year. However, since yesterday, some questions have emerged: Does Bitcoin still have room for growth? Why will it continue to rise? Let’s first look at several fundamental factors:

1. The possibility of the US election is low.

2. High expectations for a rate cut by the Federal Reserve.

3. The global financial system faces new risks, and central banks around the world are increasing the printing of money to combat inflation.

4. Smooth progress in the development of China’s digital currency.

5. Grayscale Investments suspends all new investment activities and trading after a more than 5% downturn during the opening of the US stock market, causing market sentiment to fluctuate.

6. The launch of the Ethereum 2.0 testnet Medalla has been delayed but still has room for continuous growth.