Like most other markets, the price of bitcoin is forecasted by the dynamics of supply and demand. This is well illustrated in the chart below. It is clear that the equilibrium price of an asset depends on the amount of demand for that asset.

Supply and demand chart taken from the Encyclop .dia Britannica
According to Bitcoin, Matt D'Souza, CEO of Blockware Mining, recently noted that a number of macro-factors are currently driving Bitcoin demand, and possibly in the future. They will continue to do so.

Of course, the impact of these factors will cause an upward trend in the price of bitcoin, which, assuming the stability of bitcoin supply, any growth in demand can increase the value of other digital currencies. Also, given that there are a number of macro factors, the price of digital currencies will be affected quickly, according to De Souza.

Fundamental Reason No. 1: Geopolitical Unrest
In recent months and years, we have seen a lot of excitement and change in geopolitical attitudes. Recent developments have suggested the possibility of a trade war or a Cold War between the United States and China. This type of war could begin with the imposition of sanctions on Chinese companies and officials by the United States, given Hong Kong's democracy.

The situation in Europe is also tense, and if the recession continues, there is a possibility that the EU will fail. This has been widely discussed in the past by marginal analysts and economists, but they believe that this is likely to happen given the recent monetary and fiscal policies.

When it comes to trade-offs between the United States and China, bitcoin will be particularly beneficial.

Jeff Dorman of the Arca Digital Currency Investment Fund said:

In the spring / summer of 2019, the value of the Chinese yuan fell to its lowest level against the US dollar, significantly to the benefit of Bitcoin. Conversely, when the yuan appreciated in the fall of 2019, the price of Bitcoin experienced a downward trend and reached its lowest level.

Fundamental Reason No. 2: Bitcoin, a fence against negative interest rates
In response to the downturn in economies, the world's central banks have put the implementation of irrational monetary policies on their agenda. Ultimately, this has led to a decline in interest rates in major economies such as Japan and the European Union.

While many of these negative interest rate policies have not yet been widely reflected in commercial banking, some believe that this negative impact will become apparent in the near future.

Bitcoin may also benefit from this, as it has nothing to do with government policies and negative interest rates and could possibly be seen as a barrier to this central bank policy.

Fundamental Reason No. 3: Money printing by the central bank
In recent months, due to the recession, the central bank and the government have put large amounts of paper money on their agenda. That's why investors and economic analysts predict that the value of rare assets such as bitcoin and gold will rise.

According to previous reports from Beat-Quinnist, Elon Musk, CEO of Tesla, told Bitcoin to J.K. Rowling, the famous author of the Harry Potter books:

The widespread printing of banknotes by the central banks of various governments makes Bitcoin a very strong internet currency.

Reason 4: Bitcoin is becoming a system
According to De Souza, Bitcoin is becoming a payment system that will strengthen the likelihood that the price of this digital currency will rise.

This claim can be easily substantiated by examining the development of Lightning Network and other projects that seek to increase the usability of Bitcoin in the real world.