Bitcoin price soars past $60,000
Posted on April 2, 2021 by Jonathan Symcox
The bull market phase caught a lot of people off guard as it pushed Bitcoin’s price to new heights.
The latest development includes a price of over $60,000, which also boasted the market cap of Bitcoin (the value of all BTC in circulation) to over $1 trillion.
Predictions about future growth include even higher thresholds. For example, the Winklevoss twins expect Bitcoin to surge over $500,000 by 2030. Let’s take a look at some of the factors that have helped with the rapid growth of Bitcoin.
Design of the blockchain network
The blockchain network was designed in order to keep the inflation rate of Bitcoin low. In other words, Bitcoin was created as a deflationary cryptocurrency.
There are a couple of reasons that make Bitcoin immune to inflation. First, Bitcoin halving is a way to reduce the block reward of the miners, and they will be less inclined to keep mining at the same rate as they did before because the process of mining is getting more expensive and competitive.
More specifically, the block reward was firstly capped at 50 BTC in 2009 after the first 210,000 blocks were mined in 2012, the reward automatically was halved to 25 BTC.
This process repeated in 2016 when the reward was minimised to 12.5 BTC, and then in 2020, it declined to 6.25. So, the main outcome is a reduced number of new BTC generated by the blockchain system.
This also means that the supply is generally smaller after a halving than the demand, which means that the price could surge, and Bitcoin would enter a bull market phase. If you look into data from previous halvings, you will notice that this is typically true, especially after the halving and even a year after the event; the price is still on an upward trend.
Rise of online trading
Another reason why the demand is increasing faster than the supply is the rise of online trading sites.
There is a multitude of exchange sites online, and during the previous between holdings, there weren’t that many options, and a lot of people relied on mining to obtain BTC.
One great option is Bitcoin Billionaire. This is a trading platform that offers exciting opportunities for its users to earn high ROI thanks to its cutting-edge AI-powered software.
Actually, you can make up to 70% in daily earnings. What’s more, complete beginners can easily trade on the site and set up their account thanks to the intuitive design of the platform, and also, you will access an in-depth trading guide to get you up to speed.
The minimum deposit is $250 for trading here.
Interest from mainstream investors
The meteoric rise of Bitcoin is also supported by mainstream investors, including financial institutions. For example, a lot of celebrities are investing in Bitcoin and are making the public and their audiences aware of the benefits of cryptocurrencies and BTC investments.
One enormous investment in BTC from corporate cash came from Tesla in 2021. Namely, Elon Musk has invested $1.5 million in Bitcoin. Furthermore, a lot of other celebrities like Michelle Phan, Maisie Williams, Ashton Kutcher have endorsed BTC investments.
In terms of financial institutions, not only did they add another option for organizations to invest in BTC, but they also created a greater demand for Bitcoin. Some notable financial institutions include Grayscale Bitcoin Trust, Osprey Bitcoin Trust Fund, and many others.
Another reason why there is an institutional interest in BTC is the fact that Bitcoin is limited to 21 million. Plus, in times of uncertainty, Bitcoin is being seen as a safe-haven asset because it is a decentralised currency.
Also, due to the digital scarcity of this cryptocurrency, price only continues to rise.