Despite the volatile market of cryptocurrency, it is recovering after covid-19 disrupted the world economies. The economy was highly affected, and the companies and businesses were devastated by the heat of the covid-19 pandemic. Still, during this time, many blockchain and crypto startups released themselves in order to support the demand for cryptocurrencies. In addition, almost all the trading platforms and crypto exchanges available across the world have managed to raise a massive amount of funding from traders and investors to attain a good position in the market.
In the crypto space, bitcoin is the largest coin that has fueled the entire cryptocurrency market through its market capitalization that is raised more than US $1 trillion. By looking at the graphs or charts of the past few weeks, bitcoin is bullish, contributing to around 69% of market value. People who have trusted bitcoin and become bitcoin investors are cheering to see the growth of bitcoin. If you are interested in bitcoin trading, bitqs is the perfect platform for you. In the past few weeks, bitcoin’s value plummeted when there was a market crash, but again, bitcoin is coming back to its position. In early 2021, Bitcoin breaks all-time high records and reached the US $60,000, but now it is falling.
But most investors are confused to see the growth of bitcoin. So let us learn the reasons behind the growth of bitcoin and its role in raising total market value.
PayPal exchange
In 2020, it was estimated that PayPal has around 350 million users. PayPal released a new innovative feature that allows all its users to buy, sell, and trade cryptocurrencies. You can trade almost all the popular crypto coins, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash. PayPal has made a significant move that is helping the crypto industry to grow. PayPal is considered an important critic of the crypto world. Following the suit of PayPal, many other online payment applications have launched the same features to provide more convenience to crypto users to make instant crypto payments.
The positive response from major institutions
Bitcoin makes a speculative asset, and by looking at its speculation, multiple major institutions have started accepting bitcoin. Regardless of the volatile market of bitcoin, the cryptocurrencies like bitcoin are considered safe investment assets, and this has made the crypto industry earn a good reputation. In 2021, few public companies, including Microstrategy, Square and more, have started to convert their regular money treasuries to cryptocurrencies by investing in bitcoin. The positive response from public companies and other popular institutions is a great factor behind the rise in price and popularity of bitcoin and the entire crypto space.
Easy convenience
Cryptocurrencies like bitcoin were developed to be a medium of exchange, but currently, it is treated or used more as a store of value. In 2021, it has been observed that people are willing to use bitcoin in order to make payments, and they are also ready to invest in bitcoin as a safe asset. Bitcoin isn’t affected by inflation which makes it a safe-haven asset. In India, where the central bank, the Reserve Bank of India, is against cryptocurrencies, people are highly investing in it and holding bitcoins to gain good value. Even Elon Musk, CEO of Tesla Co., has invested a huge bitcoin in bitcoin and increased the bitcoin market.
Despite all the factors, the price of bitcoin rebounded again after the crash of the bitcoin market. On 13th April, Bitcoin’s price was around $65,000, but it dropped to $30,000 on 19th May 2021. The main reason behind the weakness of bitcoin is its temporary reversal in user acceptance for cryptocurrencies and regulatory concerns and issues in speculative areas of the market. In addition, there’s a dramatic decrease in the price of bitcoin and altcoins as it comes from negative headlines after Elon Musk, CEO of Tesla, talked about regulations made by the Chinese government on the extremely volatile market of bitcoin.
Only a single update of bitcoin increased or decreased its price, and the flagship bitcoin fell very low to around $30,000. Even the prices of other coins like Ethereum and Dogecoin are also decreasing and are stressing investors. Nevertheless, Crypto investors still expect that bitcoin’s price will increase by the end of 2021.
