The cryptocurrency market is green all over as Bitcoin price continues to climb to smash new barriers of resistance. The leading cryptocurrency has now surged by over 11% to hit nearly $40,000 at the same time that the United States faces political strife.
Bitcoin price massive surge
As the week heads to a close, Bitcoin price is enjoying a major price hike, breaching over $38,000 gaining over $4,200;
a whopping 11% increase in daily trading. Bitcoin price has been rising consistently over the past month, with experts predicting that the price will continue to surge. Others remain cautious, expecting a correction in price and a fallback if there is a major sell-off as investors opt to take profits instead of holding.
Looking at the past thirty days in the cryptocurrency market, Bitcoin price has faced a low of $17,619.53 compared to its current all-time high of $38,574.62. This points to an over 118% increase over the month.
Why is Bitcoin rising?
Experts and analysts point to several reasons for the rising price of Bitcoin.
The global pandemic
With fear about the economy surrounding the global pandemic in March last year, Bitcoin got a boost in both attention and investors just after facing a dip. The fresh demand and interest in the market led to slow, steady growth in the market – snowballing more attention from media, firms, and large-scale investors.
The historic trend following Bitcoin halving
The Bitcoin halving, which occurs approximately every four years, has been historically followed by a bull rally. Previously, this has occurred 18 months following the event (as seen in the famous bull run of 2017). Experts believe that the positive sentiment in the market, coupled with the predicted price trend could be one of the key factors in the current rally of Bitcoin.
The Fear of Missing Out (FOMO)
As Bitcoin continues to surge, investors who missed jumping on board earlier may be investing late. FOMO is a driver for a more sustained rally as retailers and firms buy-in as the cryptocurrency rises.
Intelligence and software service firms such as Grayscale, MicroStrategy and Square have been adding Bitcoin and other cryptocurrencies to their assets-under-management (AUM). The firms buying significant amounts of Bitcoin has a major impact on the prices in the cryptocurrency market, leading to more demand of the limited supply.