- Bitcoin price has risen steadily over the past few months, reaching a new all-time record of over $ 50,000 earlier today. A breakout was then denied and the price of the cryptocurrency fell to $ 49,100 at the time of writing.
Bitcoin price has risen steadily over the past few months, reaching a new all-time record of over $ 50,000 earlier today. A breakout was then denied and the price of the cryptocurrency fell to $ 49,100 at the time of writing.
Why has the bitcoin price increased rapidly in recent months?
Bitcoin price started to rise in October last year after PayPal announced that it allows users in the US to buy, sell and hold crypto and plans to roll out this feature to other jurisdictions. With MicroStrategy, Square, MassMutual and others interacting with BTC, corporate adoption of the cryptocurrency soon began to increase.
— CryptoCompare (@CryptoCompare) February 16, 2021
After announcing that Tesla had purchased $ 1.5 billion of bitcoin and was planning to accept payments in cryptocurrency, the bitcoin price started to rise to $ 50,000. More recently, Bank of New York Mellon, the world’s largest custodian bank, announced that it will begin funding Bitcoin and other digital currencies with the introduction of a new cryptocurrency custody service.
Adoption continues to increase, as Mastercard revealed earlier this month that it plans to offer traders the option to receive payments directly in cryptocurrencies later this year, through a new functionality to be added to existing partnerships that allow consumers to pay in crypto but convert funds.
Did we enter the balloon area?
The rise of BTC has seen a lot of speculation that we are entering the “bubble zone”. In 2017, the cryptocurrency surged over an all-time bubble in the first cryptocurrency offering (ICO) industry to around $ 20,000 and eventually burst. BTC dropped just above $ 3,000 after a year of bear market.
Jack Purdy, a cryptocurrency researcher at Messari, pointed out that this year the Bitcoin price chart looks “almost identical” to the August 2017 price chart when Bitcoin was traded from about $ 2,700 and rose to about $ 20,000.
Civic founder Vinny Lingham commented on the graphics and said “this is not a bubble yet.” He stated that the next bubble is “still coming” and apparently implied that the price of Bitcoin will increase exponentially in the near future.
It’s worth noting that Smart Contracter, the pseudonymous crypto analyst, predicted the bull market peak to be $ 50,000. Smart Contracter is known for accurately predicting market gold in 2018.