Bitcoin (BTC) has been doing well again in recent months, and this month in particular. Today the bitcoin price even has its previous all time high (ATH) of $64,899 broken. Why is bitcoin rising so fast? In this article those possible causes that contribute to the positive sentiment in the market!
Bitcoin ETF
The most obvious cause for the price increases in recent days lies with the approval of the first US bitcoin exchange traded fund (ETF). This stock fund makes it easier for investors in the traditional investment market to gain exposure to bitcoin. As we saw yesterday, this fund was an instant success. On its first day, $1 billion was traded within the ETF, which is very good compared to other ETFs on its first day.
Inflation
Because Bitcoin is a decentralized network, it cannot be influenced by anything and anyone. The cryptocurrency therefore increasingly serves as a safe haven for investors to protect the value of their capital against inflation, just like gold does. This inflation is of course the result of the enormous mountain of debt that many countries have, especially after the economic measures to absorb the effect of the pandemic. Inflation is likely driving many investors to the safe and independent Bitcoin.
Crypto market develops by
The ever-evolving crypto industry may also contribute to the rising bitcoin price. Platforms such as Ethereum (ETH) and Cardano (ADA) are seeing more and more activity, a situation reminiscent of the early days of the internet. For example, handy investors can use their bitcoins within the decentralized finance (DeFi) sector to earn returns from bitcoins to a liquidity pool to add.
Of course, Bitcoin is also gaining more and more name recognition worldwide. With each passing day, the network continues to run unscathed and huge amounts of money being transferred from wallet to wallet without any problems, the robustness of Bitcoin as a network is confirmed.
