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After hitting a new High of $68,000 earlier this week, It Could be getting ready to hit $70,000 for the first time this weekend.
The recent bull run in the crypto market is breaking more records than ever before. The total market value of Bitcoin is more than 1.2 trillion dollars with the total market value of cryptocurrencies hitting 3 trillion dollars
As the market leader, It continues to attract interest both from retail and institutional investors. Various factors could drive the price of Bitcoin to $70,000 this weekend including;
A rise in the inflation levels
The recent inflation data indicates rising levels not seen in decades. This comes after a sustained campaign to mitigate the effects of Covid-19 resulting in an oversupply of money in the market.
Although not proven, most analysts believe investors are choosing to put their money in the coin for defensive hedging purposes.
As a result, Bitcoin is slowly taking up the market from the traditional deflationary assets such as gold. In 2021, Bitcoin has risen at least 130% while Gold has only grown 4 %.
Although some analysts indicate the inflation levels are temporary, it seems to be rising by the day. Hence, there are expectations more money will keep flowing into Bitcoin in rush to defend against loss in value.
There has been a positive regulatory response from governments in the last few months indicating Bitcoin is gaining support from the authorities.
A key example is the legalization of its use by the government of El Salvador. Although it’s a small country, the impact could go a long way in giving confidence to more governments on how to approach it.
The US government recently gave the go-ahead to the first Bitcoin ETF. This is a clear indicator government has started adapting to the existence of cryptocurrencies.
What is common in all this is that Bitcoin is the crypto in the discussion. An increase in government support is giving investors more confidence in the safety of their investments.
Hence, this could be among the reasons its price is growing and could soon hit a $70,000 milestone.
Being the first cryptocurrency, bitcoin continues to enjoy market leadership both in value and popularity. This gives it an edge in the market because it is easier for investors to relate with.
It is also available on most trading platforms making it easier for investors to access it. There is also a huge gap between bitcoin and the next crypto (Ethereum) in market valuation indicating how far ahead it is.
These factors make it easier for the coin to grow in the future.
Only 21 million bitcoins can exist out of which 19 million are already circulating. This low cap makes it easier to gain value as demand grows.
The availability of the supply cap has a direct relationship with its price. Soon, the last coins will be mined and that’s it leaving just 21 million coins to satisfy a multi-billion market.
Hence, the future of Bitcoin looks very bullish. Based on the recent price gains, it is possible to hit the $70 thousand mark within the next few days.