Cryptocurrencies are infamous for having volatile values that are subject to major fluctuations. Among these, Bitcoin has made the biggest name for itself over the last few years due to its incredible rises and dips in price. People all over the world have been adapting to the new technological age of digital currencies and many enjoy the thrills associated with a dynamic and volatile crypto stock market.
Unfortunately, this volatility has also been the reason for many people to avoid it altogether as it is rendered unpredictable. The recent upscale in the Bitcoin value has not helped any present apprehensions in the market but it has surely sparked up more conversations. More and more people are now considering investing in cryptocurrencies. To know more visit BitQT App.
Over the last two months, Bitcoins value has risen by north of 60%. This has led many to understand the value of Bitcoin as an asset and there are many in the market today who are considering investing in it, especially after the third ‘halving’ which occurred recently. Bitcoin prices were dormant for the last couple of years and were almost always below 11,000$.
This dormant behavior had come right after the surge in Bitcoin prices which saw them increase up to about 20,000$ in 2017. Unfortunately, since then, these prices lay quite low for the following two years. All of this changed two months ago when Bitcoin prices began to rise vehemently and went up to 15,500$ which is about a 60% rise in value. So the question that is on everyone’s mind is, why did this happen?
A Holding Sentiment
Currently, the crypto market is low on liquidity due to the current scenario. People want to hold on to the assets that they possess and this has caused a shortening up of liquidity in the market for Bitcoin. Various major spot buyers have created this situation by reducing the supply.
In addition to this, a lot of retail market sellers have also acted upon their assets which were in the exchange a while ago. These assets have since been withdrawn from the exchange and been transferred to their wallets. This has created a scarcity in the amount of available liquid Bitcoin assets which has led to the value increasing drastically.
There is a general strong holding sense in the market right now because of the ongoing economic crisis. The pandemic has affected the financial sector massively and people have started to hold onto their Bitcoin assets for financial protection. This has caused the market to dry up and the prices of Bitcoin to increase drastically.
An Increased Interest
Over the last two months, the market has seen several new players enter and purchase big quantities of Bitcoin funds. Generally, such an increase in interest transcends into a higher demand which pushes the market forward and increases the prices.
In mid-September, a famous US company invested in Bitcoin by purchasing 250 Million Dollars worth of its stock. This was followed by various other companies buying Bitcoin shares and various new players entering the market. The unanimous participation in the market pushed these Bitcoin prices upward and the added scarcity of supply factor worked with the increase in demand to push the price further forward.
There has been a looming fear of a dollar sell-off in the US markets over recent events and this has prompted various companies to invest at least a little in Bitcoin for their safety. This has also contributed to the increased mass interest which has pushed Bitcoin’s value upwards.
Breaking Old Barriers
For a while now, the 12,000 Dollar mark was considered to be the barrier to break for Bitcoin values. Knowing that the Bitcoin value crossed that mark and still kept going upwards, relieved a lot of buyers on the market and convinced them to invest in Bitcoin.
It was earlier predicted in August that the Barrier to beat for Bitcoin would have to be around the 12-13,000$ mark. This is because Bitcoin was met with a major resistance earlier and prices had been lying below the 10,000$ mark for about two years until then.
Seeing as to how well the Bitcoin asset has performed, people collectively felt the need to invest in it as soon as possible. Bitcoin was also seen as a safe haven stock this time out as it outperformed gold.
All these factors came together this time out to increase the value of Bitcoin drastically and see it gain more than 60% in value for the last two months.