Bitcoin has always gone on highs and lows since its inception in the market way back in 2009. But at that time the price was just a throw-away price and no one really cared about its existence. But today in spite of all the many disturbing factors that have riddled the market, Bitcoin has achieved a good high. Consider the tension between the USA and China, Brexit and very lately the global pandemic that engulfed everything. In spite of all these factors Bitcoin has managed a straight comeback. Learn more about where bitcoin not welcome
Factors That Have Affected Bitcoin Explosion
Many factors have always played important roles in the Bitcoin market. One tiny piece of news in the media and you can be assured that it is going to cause a ripple that will surely affect the cryptocurrency. But here a few points of consideration will be illustrated.
Inundation of Bitcoin Investors
One big reason why the Bitcoin market is experiencing a continual upward surge is that there is a constant invasion of the market with new investors daily. They are aided by big institutions like university endowment funds, pension schemes, and various trusts and so on. This gives some hard cash into the hands of potential investors who have always eyed the Bitcoin market but have never had the means to invest. So one small boost and they go running to grab hold of a few Bitcoins.
Big Names Dominating the Market
Big names in the Bitcoin scenario have always made a positive impact on the currency. Colossal names like Paul Tudor Jones, insurance stalwart MassMutual, and JP Morgan have given this market that desired fillip. Their investments have made people believe that the market is a good one. If they are investing then nothing can really go wrong and so they too can invest.
El Salvador Accepting It as Legal
One of the significant factors contributing to the increase in the value of Bitcoin is the adoption of the cryptocurrency as a legal medium of exchange by a major country. This official recognition of Bitcoin as a legitimate form of money has had a positive impact on the perception of the cryptocurrency among investors, as it has increased its credibility and viability as a means of exchange. The decision to make Bitcoin a legal currency has also sparked interest in other countries to consider adopting it as well. This endorsement by a sovereign nation has instilled confidence in the stability and reliability of Bitcoin, leading to an increase in demand for the cryptocurrency.
Emergence of New Platforms
With the rapid rate at which new platforms are coming up in the market, the entire trade market has become extremely competitive. This gives hope in the minds of investors that if companies are in the mood for business with such a new form of investment, then this definitely is a viable form of investment that they can embroil themselves with. If you want to gain more ideas on bitcoin investments then apps like BitQL can help you understand the knits and bits of it.
Decentralized Investment
The first aspect of Bitcoins that every novice knows about is that the coin is decentralized. It is free from the shackles of tyranny, oppression and supreme control by any one governing body. This gives a sense of victory in the minds of people who want to be their own masters with their finances. Nobody really likes anyone else interfering with their money and investments. So Bitcoin has unleashed freedom and hope in every investor’s mind. And to top every other consideration is the factor that there are no regulations and rules dictating the market.
Media
Any media news is enough to set the price rolling for Bitcoins. It is so fragile that every little piece of news in the media can affect its prices. If the news is a positive one then the prices will skyrocket while one negative news is enough to cause it to go crashing into the dumps. If one important investor says something then investors take it to heart and start fluttering around. Say, for instance when Proshare announced its Bitcoin Strategy ETF, the prices shot high up into the sky in late October of 2021.
All said and done, as a rule never forget that Bitcoin is still in its cradle. So this requires careful consideration before striking a move in the market. There is not one single piece of perfect information on the market that could guide investors to a picture-perfect investment that assures them a bed of roses late in life.