The price of Bitcoin pushed to a new all-time high on Wednesday. The current increase follows weeks of roaming around $45,000 and pushing past $50,000 in early September.
So why the sudden increase in the crypto’s price?
The answer can be found easily by looking at its increase in global adoption, more institutional support, and other important things that have happened to Bitcoin this week.
Green Lights and Bullish News
The bullish news for Bitcoin started off from El Salvador when their president Nayib Bukele stated that the country has seen over 3 million individuals register to use its Chivo bitcoin wallet in just 26 days. That means that over two-thirds of adults in the country are now using the app, which in itself is a significant, achievement.
Michael Saylor, Source: Great Coin News
Later on the same day, Michael Saylor, co-founder, and leader of MicroStrategy, reiterated the company’s intent to keep HODLing bitcoin with them while acknowledging that the company inspired hundreds of letters to the US FASB (Financial Accounting Standards Board) to adjust accounting standards for accommodating companies that hold bitcoin.
Legacy Records presenting the first-ever bitcoin transfer with GFC, Credit: PR Newswire
Monday also saw Jorge Masvidal, UFC legend’s bare-knuckle MMA promoter Gambred Fighting Championship partnering with Legacy Records to award fighters using bitcoin, thereby becoming the first MMA promoter to do so.
Source: Bitcoin Magazine
Also, on Monday, Bitcoin jumped above the $50,000 mark for the first time in a month, which fuelled the overall bullish week.
Tuesday started off with billionaire Bill Miller giving a statement at the Forbes Summit about Bitcoin where he said that if gold is a horse, then Bitcoin is a Ferrari. Interestingly, Bitcoin has been up by over 1,200,000% over the last 10 years, whereas gold has seen a bleakish 1% increase during the same period of time.
Bitcoin had risen over 6 billion percent in the last 12 years when the first pricing for bitcoin was provided by New Liberty Standard in 2009.
Tuesday also saw US Bank, the fifth-largest retail bank in the US, offering bitcoin custody services through an NYDIG partnership. Strike app from Jack Mallers also made it possible for users to purchase as low as $0.5 in bitcoin at a time on the app.
Source: Bitcoin News
On Wednesday, Bank of America launched its digital asset research, stating that “bitcoin is too hard to ignore”. The price of bitcoin surpassed $55,000 later in the day, for the first time since May.
On the same day, El Salvador president Nayib Bukele revealed that its citizens who earlier claimed their initial bitcoin given through the country’s Chivo bitcoin wallet would be up by 10-30% had they still continued to hold their stack.
Nayib also stated that the citizens were buying more bitcoin than selling on the platform. The earnings, including remittances, were 4 times as high as the withdrawals as citizens learn to stack.
Dawn Fitzpatrick, CEO of Soros Fund, Source: Bitcoin Magazine
Later on Wednesday, CEO of the $6 billion Soros Fund Dawn Fitzpatrick confirmed that the fund owns some bitcoin and called it more than just a hedge against inflation. He also stated that “Bitcoin has crossed the chasm to the mainstream.”
Leah Wald, CEO of Valkyrie Investments, Credit: Bitcoin Magazine
Adding more to this wave of bullish news, Leah Wald, CEO of Valkyrie Investments, said that bitcoin is making itself one of the strongest monetary networks and an absolute digital store of value. She also said that they anticipate this bull run to take it near highs in the fourth quarter.
Also, US Senator and Bitcoin proponent Cynthia Lummis revealed a $50,001 to $100,000 bitcoin purchase, according to CNBC.
Andrew Yang, Credit: Yahoo
American Entrepreneur and Politician Andrew Yang, who most recently built a new political party in the US hoping to contend for the presidency, told that he’s a “big proponent” of bitcoin and that his newly started party would support Bitcoin.
Later in the day, a J.P. Morgan report stated that institutional investors look at bitcoin as a better hedge against inflation than gold.
Bitcoin Mining Farm, Credit: Analytics Insight
On Friday, the overall bitcoin held by major mining farms was verified to be over 200,000 BTC, equivalent to $1.1 billion. As miners continue to gather bitcoin, and as both institutional and retail investors continue to collect and hold bitcoin, it is highly probable we’ll see a shortage in supply later this year, fueling this ongoing bull run even more.
Bitcoin has been up by more than 400% since last year, as the last week saw Bitcoin go past 20%, leading many to believe that the next phase of the current bull run is on its way. Bitcoin still seems to have a lot of potential upward trend left for the rest of the year, and it’s becoming more and more likely that Bitcoin will hit the six-figure mark by the end of this year if the current trajectory continues.
With the El Salvador government and its citizens in the green for Bitcoin, it is likely that more countries will expedite plans to adopt and implement bitcoin as a legal tender, or at the very least introduce better and more favourable regulations to encourage investments in their nations.
Politicians all around the world have been signalling support for bitcoin, including countries like Brazil and Zimbabwe that have spent years facing economic instability and financial turmoil.
There’s more than enough momentum left in the ongoing surge for which Bitcoin is likely to reiterate its current standing all-time high sometime later this month.
Maybe there’s an upcoming bearish case that might not happen until November. However, the upside is very clear, and both the support and interest in Bitcoin are definitely increasing day by day.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.