In the wake of the uncertain US presidential elections bleak condition and the COVID-19 of the fiat, the market makes investors want to put their money into Bitcoin,
Bitcoin continues to trend toward high prices. There are a variety of factors that continue to drive BTC to increase in value which has led to it breaking through the major resistance level and boosting investors’ confidence that its value will continue to climb higher. In a report within Investopedia on the 5th of November in 2020.
The high rate of inflation, as well as an increase in stimulus, makes it a secure investment. The rising acceptance of different payment providers such as Paypal allows the ability to easily access Bitcoin which is increasing the popularity of local businesses and has led to them beginning trading in bitcoin as well as another cryptocurrency. If you look at the historical trends it’s always very positive.
Level of Resistance
The Official eKrona Cryptocurrency market has been considered by many investors to be the most volatile of currencies as cryptocurrency in recent years. The peaks and troughs of bitcoin were extremely volatile. In June 2019, it surpassed the 14,000 US dollars resistance level but was unable to break through the level.
If Bitcoin was to cross that threshold the market would then trigger an upward trend in the market, but it did not break through that resistance level and then fall again until it reached 3800 dollars.
Bitcoin once again crossed that threshold and then fell, however, in November bitcoin sped across the $14,000 dollar mark and continued to climb and reached an all-time high. new resistance line of 20000 dollars.
Investors believed that bitcoin could surpass 20000 dollars. Bitcoin could surpass this mark as has been demonstrated in the past, which has increased the popularity and value of bitcoin.
Rush to the Safe-Haven Asset
The primary reason for the rise of Bitcoin price is due to the COVID-19 virus and the increase in the value of the US dollar at 2percent per year, and people buying bitcoin due to the lower buying power of the dollar.
The US government has bolstered the economy through 2.4 trillion dollar stimulus packages that have sparked concern among experts on the subject of decreasing purchasing power as well as the possibility of increasing the rate of inflation in the US.
In order to deal with this crisis and the rising cost of living In order to cope with the rising inflation, many are looking to take refuge in traditional assets that hold their value for a majority of the time. These are assets that are considered safe havens similar to stocks within the sector or precious metals that are more stable, Bitcoin is a new asset that is considered a safe haven.
Bitcoin has proven to be the most secure asset around the globe. The majority of people are making their dollars Bitcoin and, in accordance with law, a rise in demand will increase the cost.
The use of Bitcoin to Pay
As well as other factors for the rise in bitcoin’s value are its increasing demand and use as a payment method. PayPal has announced its services for cryptocurrency-based payments. Customers can make use of Bitcoin to transfer and receive money. Customers can store, purchase bitcoin, sell it or exchange it and other digital currencies to use as payment methods.
The announcement of bitcoin’s value soared immediately because of the confidence of users who use PayPal. More than 350 million users using PayPal across the globe are now able to purchase, sell, and store Bitcoin or other cryptocurrencies, as well as more than 20 million companies, accept Bitcoin as a form of payment.
A payment application that is world-renowned and has more than 40 million users in use is Venmo. Venmo provides the identical services of PayPal for crypto and Bitcoin has made access to bitcoin more accessible than ever before with rising bitcoin costs.
Apart from Paypal and Venmo There are numerous other renowned cryptocurrency host companies that offer services such as Square, CashApp, and many more, that are gaining popularity and increasing the number of customers of Bitcoin as a currency.
Investments by Public Companies
As Bitcoin has proven itself to be a Safe-Haven asset, the story is constantly growing among traders and investors. Instead of keeping money for a long period in this volatile market, it is preferring to invest in safer assets.
Prior to that, just individuals thought about this idea however, now large publicly traded corporations are beginning to convert their assets to cryptocurrencies, mostly using bitcoin. Bitcoin is the highest security of worth than cash. It is no problem storing Bitcoin and it is utilized as a store of value and also as a cash equivalent to any other currency that is fiat.
MicroStrategy is a large business analytics company, recently invested more than $425 million in Bitcoin. In addition, an additional company called Square has also made a 50-million dollar investment into it. Since then, a number of large corporations are following the trend and investing in Bitcoin that does not just increase the acceptance of Bitcoin by individuals but also increases its value