Bitcoin Price Rushes to $37.5k, These Two Factors Are Backing Rally
Bitcoin price has resumed its upside momentum after experiencing the largest one-day selloff on Monday, thanks to investor’s optimism over digital currencies and a massive inflow of investments.
Bitcoin price rallied close to 30% since the beginning of this year followed by the surge of more than 300% in 2020. The upside momentum looks unstoppable because institutional investors have been pouring in money in Bitcoin over the past few months.
Bitcoin market capitalization jumped to $694 billion after the latest gains, making it the eighth-most valuable asset all over the globe, according to Asset Dash—which tracks prices of stocks, crypto tokens, and exchange-traded funds.
Why is the Bitcoin bull-run gaining momentum?
Bitcoin price has been extending the bull-run day over the day. This is because of the sentiments that digital coins are the future of the global monetary system.
In addition, some analysts are calling Bitcoin the gold of the new era. The bold price predictions are also playing a big role in the bull-run.
The majority of market analysts are of the opinion that the price of Bitcoin will stand around $100K by the end of this year. Meanwhile, Morgan Stanley analysts came up with a bold prediction, expecting the price to hit $146,000 level by the end of this year.
PwC says these two factors are supporting gains
“When you look at this Bitcoin rally that we have been seeing in the last couple of weeks and months, really, there are two big elements driving it. One is the continuous entry of institutional players,”
PwC’s global crypto leader Arslanian said.
The second price driving factor is retail investments. The integration of Bitcoin into PayPal and Square Apps makes it easier for small investors and common users to buy and hold Bitcoin. These retail investors are buying Bitcoin for fear of missing the rally.
“A lot more people today have accounts on crypto exchanges than before as buying cryptocurrencies is easier now than before,”