Remember the peak reached in the year 2019 by bitcoin. He touched the
symbolic ceiling of 30,000 dollars. Yet he had fallen shortly before this peak
down to the lowest mark of $6,000. Bitcoin was trading in March
2019 at this value of 6000 dollars, the lowest in the history of its creation, before
to rise to break his own roof and reach $34,000.
The pandemic crisis has come to ruin everything for crypto in 2020. The market has
depreciated. Despite this difficult moment of the crisis of the global pandemic and which
worsens after by the invasion of Russia in Ukraine, the bitcoin has kept its place on the roof
of cryptocurrencies. But regardless of his stability at the head of the cryptocurrencies,
uncertainty dominated investor sentiment.
But for some time, that means a few days, hope is reborn and the cryptocurrency price curve
points up. This increase occurs after a long period of cryptocurrency depression,
accompanied by a constant stress that gnawed at investors who lost a large part of their
money. Even if no one dares to predict the end of the cryptocurrency nightmare currencies,
especially during the bankruptcy of FTX which weighed down the course of the latter, This is
good news that still heralds the beginning of the end of torment. Bitcoin numbers are on the
rise. Last week they exceeded the price of $21,000.
This rise occurred as a result of declining market condition followed by a rise in consumer
prices. The reason for this price spike, without even seek to look very closely, it is always the
eternal law of supply and asked. Many investors saw a falling market that was accompanied
by a spike in inflation, which caused prices to rise considerable.
According to data from several cryptocurrency market analysts like On CoinMarketCap,
bitcoin price broke through $21,000 this week last. Breaking the 20,000 mark sounds like a
feat since the month of November of last year, and this rise is no longer at a rate of stopping.
It continues for more time than the price today exceeds 21,000 dollars.
Of course, this rise in the price of bitcoin has allowed other crypto-
currencies to react on the rise. This is first of all the case of ethereum which is on the bitcoin
kits without ever going over it. Ethereum therefore saw its value exceed the price of 15,000
dollars. Other cryptocurrencies like Dogecoin gained more by 10% in less than 24 hours.
This is an overall increase that is in the process of produce under the delighted eyes of
crypto-currency investors. Several factors come into play to explain the reasons for the
increase in the price of cryptocurrencies.
Bitcoin will have to continue its small path of rising in value until 2024 date on which it
should expect to see its halving occur (which means halving.) This halving phenomenon
which always halves the rewards granted to miners automatically causes the reduction of the
value of cryptocurrency prices. In fact, to better understand it, it is the reduction of available
tokens which contracts the market for the supply of bitcoins. This state of supply reduction
automatically causes the price of the bitcoins.
Once again it is the balance of supply and demand that always goes with its well-known
consequences. It then occurs at this moment of the halving a well-known phenomenon. It is
the tension of investors who hesitate to buy when it’s expensive. So this moment of the halving
has always been a moment of the loss of bitcoin’s market value. And as the halving is still at
one year, the exchange price of bitcoin will continue to rise in the market as the global
economy is slowly recovering as a whole. The experts think that even at the time of the
halving the bitcoin will be able to resist because that investors would have had the necessary
time to anticipate. But let’s not exaggerate. Cryptocurrency markets may surprise us as they
usually do.
Another factor is lower inflation which has benefited market capitalization cryptocurrencies.
This surge in prices benefits the entire market for crypto that is getting back into shape after
months of uncertainty. Therefore the crypto market capitalization increased by $83 billion. At
time of writing this article, we can say that the amount of the capital on the cryptocurrency
exchange exceeded the amount of 979 billion dollars. This improvement in cryptocurrency
prices coincides with a report published in December last year on falling inflation. And the
FED foresees the slowing of its interest rate peaks. All of this helped to stimulate risky assets
like cryptocurrencies.
The final factor in this rise is the relationship of cryptocurrency and the industry.
macroeconomic. Improving inflation figures pushing up prices cryptocurrencies correlates
with the macro economy sector. And this confirms the relationship between the two: macro-
economy and crypto-currencies. These currencies that preached independence to the
traditional economy seem to sign their affiliation to it. Let’s wait and see if virtual currencies
may deny in the future the reasons for their origin.
