Under what circumstances will Bitcoin rise (Under what circumstances will Bitcoin rise in price)?

Under what circumstances will Bitcoin rise? Why does it experience such high growth? Below, we will analyze from three perspectives:

1. What are the reasons for the rise of Bitcoin, and under what conditions will it generate such huge returns;

2. What factors have led to the increased interest in the cryptocurrency market? We all know that fluctuations in prices can occur due to certain aspects and technologies, so when you start paying attention to crypto assets, you will find that they have been around for a long time. However, it is not easy for ordinary investors to accept this, especially because they do not understand what Bitcoin is, how it operates, and other reasons. But it is even more difficult to buy Bitcoin and make the expected profits. Therefore, many people see this possibility as an investment opportunity or a risk-return ratio. For example, if a country wants to issue its own digital currency (such as the US government) or a central bank of a country needs to print money. In this way, many financial institutions can use these fiat currencies for trading without the need to purchase physical gold bars and other traditional tools, while also not needing to hold valuable items such as paper money. In addition, some speculators also like to obtain funds inflow in the form of fiat currency, which makes Bitcoin a good choice as an alternative value storage method; of course, some people believe that it will only get better and more secure over time.

3. Can Bitcoin be used as a payment system? If that’s the case, then Bitcoin is a very useful investment product. However, in many different industries, Bitcoin is still unable to be used as a payment system. For example, gold, which is used as a hedge against inflation, may be converted into other assets by the parties involved in futures contracts. This can reduce the exchange rate of the US dollar against the Japanese yen and make it usable for daily expenses.

4. Can Bitcoin effectively solve problems such as bank runs? Currently, it seems that Bitcoin does have some problems. However, to a certain extent, Bitcoin is not truly decentralized, but has certain endogenous characteristics.

5. What types of BTC supply exceed 10 million? There are currently two situations worth noting: the first is when miners sell off, and the second is when demand appears after the bull market cycle ends.

6. Due to the large price fluctuations of Bitcoin, there is not enough time to support the market, and it is difficult to maintain a long-term bullish sentiment. Therefore, I believe that Bitcoin may continue to maintain its strong position.

Under what circumstances will Bitcoin rise in price?

Editor’s note: This article is from Crypto Valley Live (ID: cryptovalley), Author: Alex Dovbnya, Translation: 0x13, Authorized reprint from Odaily Star Daily.

Bitcoin has been showing strong gains in the past few months, and recent price trends indicate increased interest in this asset.

According to data published by crypto analyst Alex Dovbnya, the price of Bitcoin has been rising since the end of March. The current trading price is around $22,000. However, this does not mean that it is soaring to new highs. In fact, when you see that Bitcoin has reached its historical high, you will notice some key factors. These are the issues of how to buy and hold Bitcoin, which we can examine from two aspects:

1. Market liquidity. If investors want to invest their funds in Bitcoin, they need to find a way to obtain their portfolio; the second consideration is risk-adjusted returns.

Due to the decrease in volatility and the continuous increase in market capitalization, this trend often continues, but the situation is different now because the supply of Bitcoin is still small. On the other hand, with more and more institutions participating, the price will also rise. So I think once there is a significant pullback, the situation will change- this may cause the value of Bitcoin to return to its original level.”

2. Fundamental analysis. The fundamentals of Bitcoin have always been very strong, but even if there is more institutional support for this emerging market, it may further push up the price of BTC.

Nevertheless, most people remain optimistic. Although there are some signs showing positive signals, such as the tightening of the US Federal Reserve’s policies or the increase in inflation expectations, this view is often underestimated in certain situations. For example, if the Federal Reserve decides to pause economic activity and maintain the current pace, other countries will not do the same; on the contrary, when the stock market falls, the long-term bearish sentiment of Bitcoin will appear. Therefore, when Bitcoin starts to rebound, they are expected to have a certain degree of recovery.

3. Technical analysis. For many observers, if the price is at recent highs, the technical indicators of Bitcoin may also be bullish. In a sense, Bitcoin is a relatively new asset class. In fact, in traditional financial markets, stocks are considered safe-haven tools. However, in spot exchanges, Bitcoin is attractive as an “alternative” currency. “No other asset has such potential,” he added, “just like gold, Bitcoin faces challenges.”

4. Macro perspective. When the market conditions are uncertain, it is difficult to predict whether Bitcoin will recover in the next five years. However, from a macro perspective, Bitcoin does have the potential to experience bull markets at a faster pace. Compared with stocks, Bitcoin seems to have more hope now than ever before. Additionally,