Bitcoin, the world’s most talked-about cryptocurrency is not only out of its slump but is witnessing a surge again. Bitcoin has come alive again from its lowest point earlier this March at $5,000 and has already crossed the $18,000 mark which is its highest since the slump of late 2017 and early 2018. It is growing constantly at a good pace and is also to reach its all-time high of $20,000.
Bitcoin prices in 2020 have been surging for more than 100 days, which is a record for the bitcoin pricing history. Bitcoin is considered very volatile among investors and has been drastically highs and low in its pricing but this time things are a little different. Many experts believe that this time the bitcoin growth will be sustainable.
According to the CEO of Unocoin, Sathvik Vishwanath, this time there are more reasonable reasons for the price surging. Some of them are Paypal allowing its customer to buy and sell cryptocurrencies, crypto’s addition to American hedge fund assets, and DBS bank announcement of starting crypto trading services for their users. According to Sathvik, it looks like the current surge in crypto is more sustainable this time and the current pandemic situation is helping it.
Why Bitcoin Is Surging Again?
According to the experts in the crypto market, here are some of the reasons, why bitcoin is surging again.
1# Paypal’s Acceptance And Push Of Bitcoin
One of the important reasons behind the bitcoin price surge is PayPal’s acceptance of cryptocurrency on its platform. PayPal has plans for increasing cryptocurrency utility by making it available as a medium for purchases for its merchants worldwide. Just after the PayPal acceptance news Bitcoin surged over 8 percent.
According to Dan Schulman, CEO of PayPal, they are looking forward to working with central banks and regulators worldwide to offer their support to shaping the future of finance and commerce with cryptocurrencies.
2# Confidence Of Investors And Institutions
Over the last few years, Bitcoin has been able to create a good presence in the financial market as various institutional investors and American hedge funds started turning to the crypto market. Even major banking institutions have started showing some serious interest in crypto assets.
Many financial moguls who earlier called Bitcoin a Ponzi scheme are taking it more seriously now.
According to the Founder of Bitex, Monark Modi, the recent surge in Bitcoin price is because of the increasing investment from payment companies, investment banks, and investors. According to Modi, Bitcoin has a full-blown chance of touching the $22,000 mark by the coming quarter.
3# Bitcoin Halving Event
Bitcoin halving event takes place when the reward for a mining Bitcoin transaction is reduced by half. The last Bitcoin halving event occurred in May 2020. During this event, the cryptocurrency’s inflation rate is halved and so is the rate at which new bitcoins are circulated.
According to the CEO of CoinDCX, Sumit Gupta, in the previous halving event, Bitcoin’s price surged exponentially and the current pricing trend is very much similar to it.
4# COVID’s Impact On Investor Outlook
Due to COVID-19, the world economy is on verge of collapsing, and right now the market is filled with uncertainties, investors all over the world are adopting Bitcoin as an alternative to gold.
According to Nikolaos, a JP Morgan analyst, the virus crisis is propagating the reassessment of bitcoin. There is a reassessment about its value in the market as an alternative currency or as an alternative to gold.
This surge is not restricted to Bitcoin, other cryptocurrencies are also surging as Bitcoin is moving in an upward direction. Many experts are expecting Ethereum to increase also and perform better in the coming years due to its scheduled release of Ethereum 2.0 in December 2020.
You can read more about crypto and side hustles at pennydoor.com