Bitcoin Soars to $21,500 On ‘Hated Rally’ – But Is There Fuel To Keep Rising?
Bitcoin just hit its all-time high of $21,500, an incredible surge of over 80 percent since its mid-October low of $11,640. How could something that was described as ‘hated’ earlier this year reach such a monumental milestone?
What Caused This ‘Hated Rally’?
Many crypto experts and investors turned against Bitcoin earlier this year, assuming the digital asset was overpriced and overhyped. But what caused this massive surge in price?
– Bitcoin finally gained the recognition it deserves from financial institutions, with the likes of PayPal, Grayscale, and Square taking the plunge and investing heavily in it.
– Institutions and high net worth individuals entering the market brought more liquidity than ever.
– The upcoming halving of the BTC block reward in May 2020 has contributed to the increasing hype around Bitcoin as its inflation rate will decrease by 50 percent.
– The strong performance of other altcoins such as Ethereum and Binance coin, as well as the DeFi industry, has resulted in greater investor confidence in the entire crypto market in general.
– Finally, the U.S. dollar’s depreciation against gold and other European currencies has also helped push up the cryptocurrency’s price.
Will Bitcoin Keep Rising?
Nobody knows for sure if Bitcoin will continue rising – but there are a few key factors that suggest it still has plenty of fuel to continue its surge higher:
Positive Regulatory Developments:
Regulators have taken a gradually more open-minded approach towards cryptocurrencies, and this has been key in Bitcoin’s steady rise. The U.S. Securities and Exchange Commission’s recent announcement that it would consider approving Bitcoin ETFs is one example, as this would open up more avenues for institutional investors to get involved.
Overwhelming Positive Sentiment:
Due to the increasing number of tech-savvy investors, institutions, and large-scale investors entering the digital asset industry, there’s a growing sense of optimism around Bitcoin and the crypto industry.
High Demand:
The demand for Bitcoin has been increasing, with many investors viewing it as the digital equivalent of gold. Plus, the upcoming halving of the BTC supply will theoretically force investors to increase their demand for Bitcoin, as the reduced supply could cause the price to shoot even higher.
Conclusion
Bitcoin’s incredible surge to an all-time high of $21,500 is testament to the fact that it can no longer be ignored or belittled by even the biggest naysayers in the crypto industry. With positive regulations, surging investor confidence and increasing demand, there’s plenty of fuel to keep Bitcoin soaring.
