How Does Bitcoin's Price Increase?by PCEX Member Cryptocurrency ex
From USD Zero in January 2014 to USD 37,937 on February 04, 2021 – Bitcoin’s price has increased exponentially, particularly after the worldwide lockdown conditions triggered by COVID-19. See the Bitcoin’s price surge after August 2020.
Leaving behind the few exceptions between November 2018 to February 2019, the growth trend has remained consistent. Its growth remained unaffected due to international factors like the US-China tension and Brexit. Even the Covid-19 pandemic couldn’t slow its growth when the entire economy has come to a standstill due to the freezing of economic activities.
Let’s observe the key period and factors that influenced its price.
Bitcoin Vs USD 2010
The bitcoin network came into existence on 3 January 2009, when Satoshi Nakamoto, its creator mined the first genesis block of bitcoin (block number 0). It became noticeable in 2010 when the value of a single Bitcoin jumped from around $0.0008 to $0.08. Due to its peer-to-peer network without the need for intermediaries, Bitcoin in its early phase attracted tax evaders. They could bypass traditional banking infrastructure and the regulators.
Bitcoin Vs USD 2016-21
This is the period of meteoric height for BTC. It rose from USD 378.17 in January 2016 to USD 37,397.43 in January 2021. However, one can’t ignore the shocking BTC price drop in March 2020 when it hit USD 6,483.74, but thereafter it hasn’t looked back.
BTC witnessed both kinds of investors – retail and institutional investors – during the period. The retail segment has seen successful investors to the likes of Ray Dalio and Paul Tudor Jones repositioning their faith in Bitcoin. They see it as the “best inflation hedge.”
The institution segment is also gaga about Bitcoin’s boom. According to Fidelity, 800 institutional investors own around 36% of the crypto asset. The list of institutional investors includes to the likes of MicroStrategy and Grayscale to JPMorgan and Goldman Sachs. An independent study from crypto asset insurance company Evertas is of the opinion that hedge funds will increase their crypto holdings drastically. It projected that 90% of institutional holders of crypto assets are to invest in Bitcoin by 2020. Their number is to reach $1 million by 2025.
Another crypto research firm Messari believes that more than 81,000 BTC belongs to “the treasuries of publicly traded companies.”
So, what was driving them? The rising Bitcoin price made it a popular hedge against inflation for retail and institutional investors. Being a non-sovereign currency that is uncorrelated with other asset classes, institutional investors see it as a potential diversification tool to hedge against highly correlated markets such as the S&P 500, Nasdaq, and the dollar. Apart from the hedging, Bitcoin and the underlying blockchain technologies serve as a secure gateway to new investment opportunities transcending territorial and political borders.
Best crypto exchanges to invest in BTC in India
BTC has gained a universal status in crypto trading and at all exchanges, it’s a dominating cryptocurrency across all spot and futures markets. In fact, it’s synonymous to the term crypto trading itself. From PCEX Member to Bybit, to Kraken, Bitfinex, and KuCoin, you will see all having the BTC trade options.
However, it’s a must that you pay attention to the pros and cons of investing with a particular exchange. PCEX Member is the few of the cryptocurrency exchange in India that accept INR as a fiat currency. It also has a smaller lot size, which means you can get started with the trading instantly. When the lot size is bigger, it takes more time to fill those. The transaction fee is also quite low at PCEX Member. The exchange has a strict policy regarding spoofing or price manipulation that protects new investors from unethical practices.
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Created on Feb 5th 2021 03:05. Viewed 243 times.