Bitcoin (BTC) is showing no signs of slowing down after an impressive start to the year. After a 250% plus rally, the flagship cryptocurrency has hit the $13,000 level, capping a 40% plus spike over the past week. Given the strength of the upward momentum, Bitcoin price could be on its way to the $14,000 mark. Investors will no doubt be waiting to see if it will make a run for all-time highs of $21,000 again.
Bitcoin Price Catalysts
The recent rally in Bitcoin price can be attributed to many factors; key among them is the move by Facebook to launch its own cryptocurrency. Facebook venturing into the cryptocurrency sector has once again affirmed crypto mainstream adoption.
The tech giant has unveiled its crypto, dubbed Libra, thus joining other mainstream outlets that have taken note of the crypto spectacle. JP Morgan launching its JPM Coin also continues to fuel crypto’s mainstream adoption push.
Weakness on the greenback is another factor that is having an impact on Bitcoin price, consequently fuelling an upswing in price. The dollar has come under immense pressure in recent weeks amidst expectations that the Federal Reserve will cut rates next month.
Bitcoin Safe-Haven Status
Growing uncertainties about the health of the global economy, as well as soaring geopolitical tension, has seen Bitcoin gain a sort of safe-haven status. Just like gold, people are increasingly betting on Bitcoin as a safe haven asset as focus shifts from other investment assets.
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In addition, one cannot dispute the fact that the recent price spike could be as a result of aggressive buyers opening big positions. In recent months, institutional activity around the crypto has increased in response to the unveiling of products that makes it possible to invest in cryptocurrencies. Cryptocurrencies have emerged as a strong investment for institutions looking to diversify investment portfolios.
Investors becoming more aware of cryptocurrencies are another factor that should continue to fuel Bitcoin price, as it is the largest and most popular in the sector.
“The growing acceptance of crypto has led experienced traders and other large investors who weren’t yet comfortable with crypto to enter the market,” said CEO of cryptocurrency fund BitBull Capital, Joe DiPasquale.
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