Why Is Bitcoin Rising…?
Investors who cannot follow the market well are wondering why Bitcoin is rising? How far will it go…? We will try to find answers to these questions.
Large corporate companies started putting Bitcoin in their portfolios. MicroStrategy bought about 41000 Bitcoins, Square about 4700 Bitcoins, Ruffer about 45000 Bitcoins. The majority of these purchases were made in November.
MicroStrategy CEO Michael Saylor described Bitcoin as "digital gold" and said it was;
"stronger, stronger, faster and smarter than all its predecessors."
“We believe that Bitcoin has the potential to become a more ubiquitous currency in the future,” said Amrita Ahuja, Square's chief financial officer. Bitcoin is a more inclusive futuristic product. Our investment is a step in this journey ”.
Three well-known, successful and experienced investors have commented on Bitcoin: Stanley Druckenmiller, Paul Tudor Jones and Bill Miller. They all predict that central bank policies will trigger inflation and recommend Bitcoin as a store of value.
Paul Tudor Jones said;
"Bitcoin has many of the attributes of being an early investor in a tech company, and unfortunately it may be god how many different people are in Bitcoin until it comes to your schedule and is surrounded,"
PayPal is widely used around the world. It has more than 300 million users. Approximately 70 million of these users buy cryptocurrencies. These purchases have intensified in recent days.
American Express, one of the largest financial companies in the USA, entered the crypto money market with an investment in an institutional crypto trading platform FalconX.
Bitcoin is a limited asset. While companies, mutual funds, individual investors buy Bitcoin, there is no limitless supply of Bitcoin. There will be a total of 21 Million Bitcoins. There are currently 18.5 Million in circulation. Bitcoin is produced about 950 per day. Therefore, as the supply is limited, when the demand is high, the price increases accordingly. Investors take positions in Bitcoin against the risks of the US dollar. Bitcoin is a hedge against inflation. While the US Dollar is printed endlessly, Bitcoin, on the contrary, is launched with a limited supply. In addition, the supply of Bitcoin is reduced by half every four years. Due to the system of Bitcoin, this has to happen and it is practically not possible to change it.
It is noteworthy that financial institutions such as JP Morgan, Citibank and Deutsche Bank also mention Bitcoin as the gold of the 21st century in their recent investment notes, and even Citibank gave a very ambitious price of 300 thousand dollars for December 2021.
Warning:
The US-based digital currency exchange Coinbase has warned crypto investors of the volatility in digital assets after the recent price rally. The exchange asked clients to consult financial advisors before investing in cryptocurrencies.
Coinbase CEO Armstrong shared on his blog:
While it's great to see the rallies in the market and see news organizations turn their attention to this rising asset class in a new way, we must stress enough how important it is to understand that investing in crypto is not risk-free. First, crypto can be a more variable asset class than the traditional types of financial instruments that most investors are used to.
Result
Bitcoin is a safe haven for investors. Especially large companies, mutual funds take long-term positions. As the global economy is getting worse every day, Bitcoin has been the only alternative. Experts expect a stable movement for a while after this upward trend will continue until the first half of 2021.
As I always said, listen to everyone, decide for yourself ...
Take care until you meet again ...
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