Why Is Bitcoin Surging Lately? Looking Into A Handful Of Positive BTC Price Influences To Note
Why Did Bitcoin Surge In The Last Few Weeks?
Bitcoin (BTC) has experienced a very positive week after reaching $7,500 in several exchanges. Most of the virtual currencies experienced a bullish price action in the last few days as well. However, there is no clear answer regarding why Bitcoin moved up after being traded under $6,000 for several months.
Why Did Bitcoin Grow?
There are several reasons that could allow us to think that have helped the market react in a positive way. It is worth mentioning that Binance experienced a hack a week ago and that Bitfinex and Tether (USDT) are being investigated by authorities in New York.
One of the most interesting points regarding Bitcoin is the fact that it is scarce and it has a maximum supply that will not change. This is very important because it allows users to be sure that their coins are going to be worth with increased demand in the space. At the same time, the digital asset is going to be experiencing a halving event, which is expected to help the virtual currency reduce the new mined Bitcoins.
Moreover, when there is a large price increase like the one that Bitcoin experienced a few days ago, investors do not want to miss the bull trend. This is called FOMO, or fear of missing out.
At the moment, Bitcoin is experiencing a correction, which was expected after several days of a continuous price increase.
In addition to it, technical analysis is also a very important thing to take into account. The digital currency seems to have met some important resistance in similar levels as a few years ago. At the moment, the bull trend seems very promising and there are several experts that think that the market is going to be growing in the future as well.
As mentioned before, although there were some negative things that shocked the market and the crypto community, they were not able to stop the bull trend in which Bitcoin was entering. This is very positive since negative news that would have catastrophic effects on the price of Bitcoin during a bear market had no effect now. This shows that Bitcoin could also be maturing as a digital asset.
Finally, a few weeks ago, several users were talking about an alt season. However, this didn’t happen. Some digital currencies such as Litecoin (LTC) and Binance Coin (BNB) experienced price increases due to specific reasons rather than an overall interest in altcoins. In the past, alt seasons included Ethereum (ETH), XRP and other cryptos moving positively against Bitcoin, but this didn’t happen this time.
Indeed, Bitcoin increased its dominance to the highest level since December 2017, which is very positive. Additionally, in the next few days, Bitcoin could be reaching the highest level in more than 2 years.
Currently, each Bitcoin can be purchased for $7,020 and it has a market capitalization of $124 billion, according to CoinMarketCap.