BTC Prices Are Rising – Here are 4 Reasons Why
By Space Coast Daily // October 15, 2021
Digital Currencies are increasingly becoming mainstream due to their underlying benefits. People have started investing and trading in crypto in large numbers as they consider BTC the new safe haven asset against volatility and inflation.
With the passage of time, and evolution of technology and financial and economic climate, people have become more cashless, both in terms of their everyday transactions, as well as the short-term and long-term investments.
Despite the devastating impacts of the coronavirus pandemic on the global economy last year, the crypto market has continued to grow.
During the last year, there was a worldwide increase in the crypto investments as people sat home, mostly jobless aiming to make money out of their savings. In order to facilitate this demand, several crypto startups emerged in the global market for Bitcoin and other virtual currencies.
Like the BitIQ Bot is one of the leading automated crypto trading bots, which utilizes its advanced algorithms to generate gains and reduce losses for the crypto investors.
The crypto market recently crossed a significant milestone. The total market cap of the virtual currency market surpassed the $1 trillion mark, of which the leading crypto, BTC, accounted for 69%.
There has been a common trend of increasing crypto prices observed throughout the market, and a lot of investors and traders have been wondering the reasons behind it. In this article, we attempt to identify and present our readers with these reasons so that they get a clearer idea of these rising crypto prices. Here is a list of 5 of these reasons:
1. Increased Institutional Adoption of Crypto
People have started investing and trading in crypto in large numbers as they consider BTC the new safe haven asset against volatility and inflation. The progression of the global markets and overall change in the crypto market has increased digitalization of transactions.
Although BTC and crypto have been popular for a long time among individual investors. More recently, the big players and institutional investors have also entered the market and have begun investing their cash treasuries into virtual currencies, mostly bitcoin.
Examples of these big names include Square, a payments firm in the United States, which has purchased almost $50 million worth of BTC. Microstrategy is another example, which is a public listed company in the United States. They have converted $425 million of their cash reserves into BTC, as they believe it to be a better store value.
After these prominent activities, a lot of other companies and firms have started to follow the pursuit. This conversion of huge cash reserves into crypto has greatly increased the reliability of the virtual currencies in the eyes of all the investors as a safer and secure mode of investment.
2. Integration of Digital Currencies in Paypal
PayPal is one of the leading digital payments companies in the world. During October last year, the company announced that it will be introducing a feature which will allow its users to purchase and sell cryptocurrency using PayPal itself.
The digital currencies PayPal intended to include in their service were Bitcoin, Ehereum, Litecoin and Bitcoin cash. According to PayPal, users of the aforementioned cryptocurrencies will be able to conduct crypto transactions using their service.
The noteworthy facts are that there are 350 million active users on PayPal around the world, who will now be able to adopt and perform transactions using crypto. Also, of these 350 million, the 30 million merchants will be able to make and receive payments in crypto as well.
3. Bitcoin Halving Driven Scarcity
Everybody knows that the crypto unlike the fiat has a limit set on its capacity, which can vary from one type of crypto to the other. Bitcoin, for example, has a total limit of 21 million coins, 18.5 million of which have already been mined.
This value of BTC mining halves after every four years,
Bitcoin mining basically refers to the process of introduction of new coins of the crypto in the market. This mining is basically done by the bitcoin miner, who performs the mining process by verifying BTC blocks available.
Now you understand what we mean when we say that the supply from a total of 21 million, is diminishing as the time is passing by. Due to the fact that the crypto becomes scarcer as more coins are mined, the demand rises over the time causing a subsequent rise in prices.
4. More Convenient Availability for Public
It should be known that virtual currencies have a double function – they can be used as a mode of exchange as well as store of value. Virtual currencies have established themselves as a proper asset class during the last ten years, right after their introduction in the market. More recently, however, as crypto becomes more mainstream, it has also been increasingly used as a payment method across different markets.
For the people who do not want to utilize their virtual currency for transactions, they can keep it as a long-term asset class in their investment portfolios. Also, a lot of people are also interested in converting their cash savings into crypto due to their opinion of its nature as a deflationary one.
They believe that this allows the crypto to have a better store of value and therefore can be utilized against inflation.
With the increasing mainstream nature and acceptability of crypto, its accessibility to the general public is surging. There is an obvious increase among the retail investors, who are inclined towards this form of asset and do not have any hesitation in paying even more for them.
So trading Bitcoin or investing in bitcoin and other currencies is very beneficial, but you should get enough knowledge about the market and trading.
If you do not familiar with the crypto currency and trading system do not jump into it directly, do some research online where you can find various platforms where you can learn about crypto trading and investing.