Bitcoins rise and fall has always been a point of discussion in the global financial system. There are a number of solid reasons to determine Bitcoin's upcoming boom in a year or two. So here we are discussing the top five reasons for Bitcoin's price explosion images which eventually slept with the highest price of the gold explosion.
1. The 2020 Economic Crisis and Money Printing
There are so many people who predicted that bitcoin would only be able to perform well in its first decade. As we have seen that the whole world was in the domain of economic expansion. And it was expected that this recession would also hit Bitcoin resulting in its termination. But they were totally wrong in their predictions. Moreover, the vast printing of paper money proved to be a blessing to Bitcoin. It is true that Bitcoin-like every global asset or market also faced a serious fall in its price due to the outburst of pandemic Covid 19 in March leading to the shutting down of economies. But it was an all-market crash situation world wide. And the point to be noted is that Bitcoin performed steadily during this economic crisis too. Rather Bitcoin had a fantastic year despite the hard times in March.
This fast flow of money would also be good for Bitcoin. Let us see how. When there would be an immense flow of money then eventually it would look for some good and profitable means for investment. And no doubt Bitcoin would be an ideal choice for a safe and flourishing investment. So, in this way, this flow of money would be a double treat for Bitcoins price and affect the price in the current market cycle. The people would turn to Bitcoin to move their cash which seems to them a rather inflation-proof asset. For more info visit https://bitcoin-billionaire.net/
2. Institutional Investors continue to tip-toe into the market
In the past several years, we find only a few news about some institutional investors on Wall St investing huge amounts of dollars into Bitcoin. By having a bird's eye view of the attitude of US investors. We observe that they usually hold Bitcoin in a regulated investment account rather than owning Bitcoin. The GrayScale Bitcoin Trust business is growing fastly. It purchased more Bitcoins than were being mined post-halving. It was one of the major investment companies swallowing a major amount of newly mined bitcoin. Referring to their recent update they have $4.4 billion in Bitcoin on behalf of their clients. We can see it as one of the main players in the US, but we can say with certainty that there would be more Bitcoin funds on Wall St in future years.
This is indicating a strong base of institutional infrastructure for the Bitcoin market. This market has been flourishing for the past couple of years mainly dependable on the people who are seriously interested in it as well as those who step in for betting on its derivatives.
Beck, a regulated Wall St exchange that is mainly created and backed by major Wall St players, could become one of the Bitcoins futures markets. Wall St is showing its creased voracity for Bitcoin and they are intending to join the market very soon. Viewing all these situations, it is clear that Wall St will take up Bitcoin as a normal asset. That would eventually help in a steady flow of large amounts of fresh investment of Bitcoin in the coming years.
3. Major Companies are now turning towards BTC as their Reserve Currency
MicroStrategy is not a widely known company. But the thing to notice about it is that it now has a $1.4 billion market cap and has recently moved a quarter of a billion dollars into Bitcoin. Moreover, it is preparing to use Bitcoin as "principal holding in its treasury reserve strategy." This is surely a piece of big news. Most of the leading companies hold their major reserves of money in cash. MicroStrategy isn't that prominent company by global standards. But it stepped forward and bought 21,454 BTC for a quarter billion dollars.
As we have discussed earlier massive money printing resulting in increased inflation, the US Fed has announced this month that they will take no further steps to tackle inflation and would let it drift higher. This imposes companies to invest some of the long term reserves into Bitcoin. Bitcoin seems to them a shield to save their cash reserves against inflation.
Although it is just a few percent of their cash reserves into Bitcoin in the hope to save their cash reserves. This will prove to be a big step to the Bitcoins massive price explosion. It could be the beginning of a great shift where we will see billions of dollars flowing into Bitcoin in the next few years. So if even a small number of companies start moving their assets to Bitcoin to save them from inflation, this price explosion would not be a matter of years but we see that it has started this month with MicroStrategy. This is just a first step intended to play a big role in the current market cycle.
