Why is Bitcoin going up? Is there a Bitcoin bull market? What is the Bitcoin price surge?
Crypto enthusiasts and investors worldwide are pondering the implications of Bitcoin’s recent surge. In the last few months, the virtual currency has hit an all-time high of almost $70,000, and its value has continued to climb. While some see this as an opportunity for high returns on investment, others are concerned that the currency may be due for a sharp decline. As a result, many investors are debating whether to sell their stakes now while the currency is at an all-time high or wait to see if its value continues to increase. Below, we undergo an analysis of the authenticity of the Bitcoin surge and the validity of its increase.
What about the Bitcoin Price Surge
As stated above, there has been a rapid increase in the price of Bitcoin, with the currency surpassing its record in over two years. This surge comes after a period of fluctuating prices and losses for investors. In the past, the rise in Bitcoin was caused by low liquidity in the global economy following governmental policy adjustments during COVID-19 in 2020. However, this recent crypto surge is slightly different from the past. Upon a deeper look, several reasons exist for this hike in Bitcoin prices.
For one, experts have traced the hike in price to the United Kingdom’s Financial Conduct Authority, which is in charge of securities and exchange in the UK. The Authority has publicly expressed willingness to consider Bitcoin as an exchange-traded fund (ETF). The virtual currency also received identical treatment in the United States as it was listed on the US Stock Exchange as ETF in January 2024. This move has been met with wide acceptance as ETFs are closely monitored, and investments can rest assured that there is an additional layer of protection for the currency assets.
A possible reason for the rise in Bitcoin’s value is the reduction in mining rewards. As Bitcoin has a limit of 21 million units and nearly 19 million are already in circulation, the mining reward is lowered by half every four years to prevent exceeding the cap. This mechanism also contributes to the increase in the cryptocurrency’s price.
Bitcoin Investment: Yay or Nay
In light of this increasing pace of Bitcoin, investors, and crypto enthusiasts are eager to know what next move to make and if a crash is on the horizon for Bitcoin. Undoubtedly, Bitcoin is a pretty volatile currency, and it has had many price bursts. Some experts predict that Bitcoin may increase to $100,000 by the end of 2024, while others expect it to fall by at least $20,000. The truth is that Bitcoin is usually affected by physical trends and sometimes traditional markets. Once one can predict the next trend that may affect the Bitcoin marketplace, there is a way to indicate whether the Bitcoin price surge is here to stay. Our advice? Carpe diem. Seize the day and proceed with what serves your interest, considering that the currency has a reputation for being volatile.
Conclusion
Many other direct or indirect incidents can be traced to the Bitcoin surge; some are country-specific. The reasons we have given for the rise above are expected to Bitcoin worldwide, and others are jurisdiction-specific – limited to the United States and the United Kingdom. This article should not be taken as determinative expert advice for investment. Kindly do further research to make informed decisions.
