The Price Value Of Bitcoin In USD Is Rising, Let’s Examine Three Culprits Responsible For The Boost
The Question Everyone Is Asking: “Why Is Bitcoin Rising?”
Afters Bitcoin’s downtrend in 2018, many believed that it was the beginning of the end of the world's largest cryptocurrency, yet Bitcoin being a very resilient digital asset, has grown more than twice its 2018 value within the first few months of 2019.
This huge leap has made many crypto investors and traders ponder on a simple question: ‘why is Bitcoin rising?’
There is really no direct or single answer to this question, however, there are certain factors that may influence it, three of which will be explained here:
- Present economic climate
- Government policies
- Fundamental values
Present Economic Climate
The current fears in the stock market have increased the use of Bitcoin (BTC) as a store of value.
At the beginning of this year, economists believed that the economical rise had ended, some even called for reduced interest rates from the federal reserves.
However, after the first quarter of the year, there was a huge growth rate of 3.2% and corporate earnings were high too.
This stats should have put any anxieties to bed, however, the story was quite different. Inflation seemed to be getting even higher and the market became more volatile.
With all this fear and anxiety in the market, brokers and investors turned to Bitcoin to serve as a store of value for their investments.
The United States government also has a part in the hike of Bitcoin (BTC) price.
Government policies regarding interest rates and policies and guidelines for the federal reserve have made the autonomy of the federal reserve and government on the economy quite glaring.
In addition to this, the Modern Money Theory (MMT) and Qualitative Easing (QE) have increased anxiety in investors also. This economic experience could go either way and if it fails the impact could be disastrous.
Investors now turn to Bitcoin (BTC) as a currency which is cut out from all government policies and regulations.
BTC’s independence makes the digital currency a more reliable option for investors.
Finally, fundamentals play a significant role in the rise in BTC price.
Bitcoin transaction volumes have reached high levels which have not been seen in over a year. This shows that the confidence in Bitcoin has returned and people, globally, are picking up interest in it once again.
In nations like Argentina and Zimbabwe, where their national banks have crumbled currency values, people have turned to Bitcoin as currency. Bitcoin transaction volumes in developing nations are at all time high causing higher global demand of the ‘king coin’.
With the conventional global currency system on a downtrend, Bitcoin seems to have a very bright future with its increasing popularity and increasing demand.