The price of bitcoin is constantly growing. And recently it has reached the new maximum of $ 16,000. Let's analyze the situation in the digital money market and try to identify the main reasons.
PayPal and cryptocurrency support
The main digital coin price increased by new move of PayPal, which has partnered with cryptocurrency company Paxos to launch a new digital currency service. PayPal users in the US and other countries will be able to buy, store and sell cryptocurrency by 2021.
Decreased interest in DeFi
The decline in interest in DeFi is evidenced by the fall in token prices - for example, YFI, UNI. Analysts explained this by the fact that some private and institutional investors have rebalanced portfolios in favor of less risky crypto assets like bitcoin.
Increasing public acceptance
The rise in the value of a Bitcoin can also be associated with an increase in public acceptance of its potential. Experts predict that cryptocurrencies will become even more popular within two years, and the main triggers of their adoption were the Chinese government, which worked on the release of a new digital currency, the Libra project from Facebook and others.
Growing distrust of the traditional financial system
The recent rise in Bitcoin prices may have been caused by the developing instability associated with the crisis and growing distrust of the traditional financial system. People started looking for safer assets like gold, precious metals or cryptocurrency.
A wave of successive shocks, including the Iranian crisis, political discord in the United States bring instability and growing concern to stock exchanges, forcing investors to look for alternative ways to preserve their capital.
Meanwhile, the COVID-19 pandemic continues across the world. European countries, including the UK, Ireland and France, are re-entering in a lockdown, which gives to society even more reason to worry.
Investment in cryptocurrency by well-known companies
More and more public figures and well-known companies in the global market are investing in cryptocurrency. More recently, big players in the market like MicroStrategy and Square have also invested in cryptocurrency. Other traditional financial institutions such as DBS, a digital asset trading platform, have also expressed their interest in Bitcoin.
8,95 $ well spent
Inventing Bitcoin: The Technology Behind the First Truly Scarce and Decentralized Money Explained by Yan Pritzker (Author)
These were the main reasons for Bitcoin's rise. What do you think about the future of bitcoin and the possibility of a new financial system in the world? I would be happy to answer any questions or submit your project to my team at Astorts Group for its evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.