3 Reasons Why Bitcoin Is Going to Continue to Rise
If you were a Bitcoin investor only a month ago, things were stellar for you. As the price plummeted above $40 thousand, it was easy to make a fortune if you were stashing BTC beforehand. In recent times the price of this cryptocurrency endured massive growth doubling its value in a matter of days. The gigantic spikes we all witnessed attracted people who weren’t interested in digital currencies. The newbies want to make quick money, but many things happening left them unsure. No one knows where BTC will go from here. As you know, this crypto is volatile, and it is hard to predict its movement.
But, as many times before, BTC has proven to be a reliable trading partner enabling many of us to make money by buying and selling this crypto. Twelve years have passed since its inception, and things will only be brighter for this crypto, in our opinion. If you aren’t sure of our thoughts, we’re going to elaborate our stance with these x reasons why Bitcoin will continue to rise. You can counter what we say, but despite its instability, BTC was able to swim through the financial market for the past decade building its foundations because it is not controlled by a person, company, or government. We believe it will continue going strong, and below you have our reasons why.
It’sIt’s in Demand and It Will Be in the Future
Many institutional buyers started relying on this crypto. These days BTC is used as a hedge against inflation. It is easy to understand why things are like this. When it was created, the rules around it were simple, and the basic fact that there will only be 21 million of them is what gives it an advantage over fiat currencies. On the opposite side, we have Federal reserves of many countries who decide based on many factors how much more money will be printed at certain times. This means that for some funds, BTC offers more stability than the dollar, for example. In the past, significant hedge funds didn’t get involved with BTC. Today it is different. Even the banks are siding with Bitcoin. The reason is simple. The biggest banks in the United States of America, such as JPMorgan Chase, predict that BTC will grow even more. They believe that the price is going to peak at over one hundred thousand dollars. According to Wall Street analysts, we could see the price go over $50 thousand very soon, while it could even reach half a million mark in the foreseeable future. If these predictions turn out to be the truth, you can understand why this crypto demand will increase.
The US Dollar Relationship
If you are following financial markets closely, you probably noticed that the US dollar is losing its value on foreign markets. The decline of the US currency started in 2023, and it is continuing this year. The US Dollar Index is clearly showing that the Japanese Yen and Euro are trending above it. This is beneficial for BTC as its price is almost always denominated in US Dollars. One of the primary reasons why the dollar’s value is going down and currencies such as BTC is going up is the number of dollars printed during the previous twelve months.
The amount we’re talking about is $3 trillion, which is more than what was printed in the previous century. It’s no wonder the price of it is going down. Furthermore, the entire country is in chaos as a consequence of the Presidential elections. While it is expected that Joe Biden will bring some form of stability, it will take time for it to happen. Besides, the Democrats are going to need even more money for their reforms, which will only further weaken the dollar. They can’t create money out of thin air – it’s going to be printed. This development will only benefit Bitcoin, and it will only fuel its rise.
The speculations regarding BTC have become more present than ever these days, and it’s no wonder things are like that. In recent times it is easier than ever buying this digital currency. When you see that large financial outlets such as PayPal are enabling purchases and that similar players will follow, you can see why. The BTC frenzy gave birth to various websites such as nigerianfinder.com, which are providing all the necessary information you need to know regarding Bitcoin, making it easier for people to get involved. An interesting fact regarding the recent spike in popularity and price of BTC when you see the trend of purchases. According to ByteTree, many recent BTC purchases were in the region of $600. This wouldn’t be surprising if the latest US coronavirus stimulus check weren’t released in this amount.
As you can see, people are prepared to invest their stimulus checks in BTC. Once the entire situation regarding the ongoing pandemic settles down, we will see an even more significant spike in the number of investments. Just think about it. If BTC could thrive in these conditions, it will do even better when the situation normalizes.
As you can see, we singled out factors that led to the BTC growth in recent times, and they’re the same reasons why it will continue to rise in the future. Could it go down? Of course, it could. It has happened before. But this shouldn’t worry you if you are here to invest in the long term. Bitcoin went up and down in the past; it is volatile after all. But if you stick to it, you shouldn’t have too many worries as it is predicted that its price is going up and the way things stand now nothing can stop this progress. But, we can never be 100% sure, so we’ll continue to monitor the situation. It would be best if you did the same with us if things change, for better or worse.