Bitcoin recorded an epic year, following which Bitcoin rose to a new record high.
It seems that Bitcoin has not yet finished its rise, and it is still, up to the moment, recording new highs at all.
Bitcoin rose to a new record high of $ 28,288, according to Coinmarketcap.
The value of Bitcoin BTC has risen more than 500% this year since its lowest levels recorded in March 2020.
Bitcoin has become one of the best investable assets in all financial markets.
But what exactly fueled Bitcoin's rally after the 2017 summit?
What is the force behind the current boom in the bitcoin price?
Here are six reasons why Bitcoin has crossed the $ 25,000 mark:
1- The decline of the dollar:
The daily chart of the dollar currency from the beginning of the year until the date of publication confirms that the dollar is heading further down, and reiterates the fact that the time has come for the global reserve currency that it is about to expire.
"Morgan Stanley" chief global strategist, Rocher Sharma, explicitly told this in one of his comments, where he said:
The US dollar has enjoyed global reserve currency status for 100 years now and the federal government has misused the currency's dominance in the financial market.
Bitcoin could now become a global reserve currency.
US officials were confident that the closures due to the Coronavirus would enable them to print more dollars in unlimited quantities without undermining the reserve currency's position, allowing the country to continue a large deficit without apparent consequences.
However, the mechanism adopted by the US government pressured the dollar, and the currency index fell to its lowest levels recorded in 2018.
The decline in the dollar contributed to the strengthening of the Bitcoin case.
This can be clearly seen through the tremendous growth in BTC after its remarkable launch since April.
Investors have flocked to place their fortunes at the top of cryptocurrencies to hedge against the dollar's ongoing free fall.
And by increasing talks about pumping more dollars into the market, all this accelerated the rise in the bitcoin currency, which is currently estimated to be above $ 25,000.
2- Enterprises entering the Bitcoin market:
What the "MicroStrategy" company started publicly with the purchase of large quantities of Bitcoin led by "Michael Saylor" made many companies return their accounts and also invest in Bitcoin.
Saylor was initially a bitcoin skeptic and said in 2013 that the days of the major cryptocurrency were numbered.
Today he's a big supporter of Bitcoin, and his company hasn't stopped at just $ 425 million.
This month, MicroStrategy acquired approximately $ 700 million in additional BTC.
Along with "MicroStrategy," "Square" bought Bitcoin for $ 50 million earlier this year.
Then, "MassMutual", a Boston-based insurance company, joined in and bought Bitcoin for $ 100 million.
“Guggenheim” bought bitcoin when the price of the asset was trending around $ 10,000, even the company's chief information officer, Scott Minerd, went ahead and said that the bitcoin price should be at least $ 400,000.
Anthony Scaramucci’s $ 1 billion hedge fund SkyBridge Capital bought $ 25 million in bitcoin.
Institutions are the force behind Bitcoin's staggering rally this year, and the massive influx of funds from these companies and deep-pocketed corporations is what keeps the rally intact.
3- Bitcoin mining bonus split happened:
This year, Bitcoin saw a third split in the Bitcoin mining reward in half, due to the original design of the Bitcoin protocol.
Bitcoin miners will now receive only 6.25 Bitcoin as a reward for each new block.
Reducing the volume of bitcoin extracted by the miners would further reduce the Bitcoin supply.
Since the market is full of demand, the drop in May of this year fueled the bitcoin price hike.
What added to the scarcity of Bitcoin was the massive “Grayscale” fund buying activity.
Grayscale's investor-focused Institutional Digital Asset Fund led by Barry Silbert is working to grow the asset-managed base.
Grayscale currently has more than $ 15 billion of the first cryptocurrency under management, and for your information, most of the company's holdings are Bitcoin.
4- Turning doubters into believers:
Prominent financial experts and billionaire investors on Wall Street are expecting a bleak and inflationary outlook for the global economy.
What happened is that those people who were previously fiercely critical of Bitcoin have now reclaimed the idea that Bitcoin is a physical store of value.
Ray Dalio was one of those converts from doubt to faith.
The billionaire hedge fund manager and founder of Bridgewater Associates recently shifted his stance on Bitcoin.
It went from rejecting BTC as a currency and a valuable asset to recognizing that Bitcoin could be an alternative to gold.
Likewise, the former CEO of "Prudential Financial" who is notorious for criticizing Bitcoin, turned around earlier this year by saying that Bitcoin is an amazing long-term investment bet.
He then stated:
Traders and investors should drastically reorganize their portfolios, allocating sections of their portfolios to Bitcoin because it is something the government cannot undermine, and it will not become worthless ...
5- Retail Investors Gripped by FOMO Feelings:
Interest in searching for the keyword "Bitcoin" has tripled on the Google search engine, as the image shown below indicates, this indicates that retail investor pockets are ready to enter in large numbers.
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