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Reasons for Bitcoin’s Rise (Bitcoin’s Rise in this Round)

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Why is Bitcoin rising? Starting from December last year, amid the continued plu

Reasons for Bitcoins Rise (Bitcoins Rise in this Round)

Why is Bitcoin rising? Starting from December last year, amid the continued plunge in global stock markets, Bitcoin has been on the rise. However, with increasing uncertainties surrounding the US presidential election and central bank governors expressing growing concerns about digital currencies and blockchain technology, Bitcoin prices have experienced a slight correction. The current trend analysis of Bitcoin prices is shown in the figure below: Due to the weakening of market safe-haven sentiment due to the impact of the COVID-19 pandemic, investors have been selling stocks. In recent weeks, due to the worsening global economic situation, investors have been concerned about the occurrence of more unstable factors in the future, which has triggered concerns about the cryptocurrency market.

So what exactly is Bitcoin? What caused its rise? We can judge from the following aspects:

Firstly, it is important to understand that Bitcoin is a highly volatile market and has some correlation with gold. Secondly, its position as a means of value storage. If we consider Bitcoin as a commodity, we can use it to predict the future growth space of Bitcoin or the speed of its development. Therefore, according to the table below, we can see that Bitcoin’s rise has exceeded 100 times, so we need to further observe the fundamentals of Bitcoin in order to better understand the reasons behind such a big market.

1. BTC/USDT (daily level)

Since January 2019, BTC has experienced a significant decline and has been running at a low point from the beginning of 2018 to the present. As of the time of publication, BTC is temporarily reported at $8,858, a decrease of about 4% from the previous day. However, it is worth noting that although the current price is still relatively low, there is still significant upward pressure in the near term, such as around the $58,000 level.

2. ETH/USDT (daily level)

Since 2017, ETH has been in a sideways consolidation. As of the end of March this year, ETH’s market value reached $278 million, an increase of more than half compared to the previous ICO financing scale. In addition, from mid-June to the present, a total of over 1 billion ETH has been issued. Among them, seven major projects have undergone tokenization upgrades or changes, including: 1. ETH 2.0 Staking Rewards Program; 2. Polkadot Mainnet Launch; 3. Ethereum Layer 2 Network; 4. Lightning Network; 5. EOS/DOT (PolkaDot).

Reasons behind Bitcoin’s Rise in this Round

According to CCN news, Bitcoin prices have been hovering above $10,000 recently. As the cryptocurrency market continues to strengthen, some believe that this round of rise is driven by Bitcoin because institutional investors and individual traders have started buying large amounts of Bitcoin and Ethereum.

In the long term, the main factor contributing to the current market sentiment is the price trend of Bitcoin, as investor demand for digital assets continues to grow and global regulatory policies continue to be implemented.

According to Tradingview data analysis, as of November 25th, Bitcoin’s market cap accounts for 61.8%; ETH’s market cap reaches 51.2%; and XRP’s total market cap occupies 21.3%.

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