The Bitcoin price hike raced past the former record high of $64,000, forming expectations that the largest digital currency in the world is confident for further gains. Overnight, Bitcoin was trading at nearly $66,000 before it gave back some gains but still, it was trading over the all time high of May 2021. Bitcoin price today is 66,930.39 USD. Along with Bitcoin, Ethereum prices also rose. You may wonder, why is Bitcoin going up today? Here is your answer.
Momentum And Bitcoin Can Never Match
It remains to be seen whether the value of BTC will rise or fall in the long run, but one thing is obvious. It is a highly fluctuating class of asset. This fluctuation imparts a lot of force on Bitcoin, whether downside or upside. Considering the fact, that in May, BTC increased to $64,000 for the first time, an astonishing breath-taking rally that witnessed it to rise up to 10 times.
But a mixture of news, including the news of Elon Musk walking back in support of Bitcoin, witnessed a crash that took the value of this crypto to $28,000 in a matter of just one month. But after the Bitcoin price hike of more than $64,000 took place, a positive graph initiated that included the launch of the first Bitcoin Future EFT in the world. At the time of writing this, the Bitcoin price in India is 49,66,659.00 INR (21.10.2021, 03.06 GMT).
It is this force that can take Bitcoin to other levels, provided that the digital currency has witnessed a slew of good news along with its ever-rising integration with financial systems.
The Technical View On Bitcoin Price Hike
Analysts have focused on a set of technical indicators to gauge the price level of Bitcoin in light of its price and chart force. For example, the relative strength of Bitcoin which is thought as a bugbear in the case of momentum is presently at 73. A reading that is above 50 implies positive force, while any reading that is above 80 implies overbought territory.
Experts and analysts also look at the price of Bitcoin in the light of its quadrennial halving cycle, as a part of which the rewards for mining are halved. When observed from a standpoint of the halving cycle, since BTC crossed $20,000 in 2017’s December, a valuation measures Bitcoin at $200,000 in the coming future.
There is another method for valuation that the Bitcoin analysts use: the stock-to-flow model. In order to forecast and evaluate the price of BTC, it takes into consideration the number of coins that are presently in circulation and the navigation of the newly mined coins.
The Fundamental Factor
Bitcoin has recently witnessed a series of positive news. From being accepted as a legal tender in El Salvador, to the current launch of Bitcoin Future ETF, the digital currency world believes that the acceptance of Bitcoin as a class of asset or even a medium of potential store of value or exchange is highly likely.
The other aspect that the investors must look into is acceptance of not just digital currencies, but also varied solutions that have been made possible by the blockchain technology as a sentiment indicator. Over the last few years, the advent of decentralized finance, underlined by the blockchain technology has raised a number of solutions like the NFTs.
The Bottom Line
The Bitcoin price hike indicates that the investors should not ignore digital currencies as a class of asset and BTC can surely become a small part of their portfolio. But it is crucial not to go overboard. You should invest only as much amount of money as you are ready to lose. If you wanted to know what happened to Bitcoin today, I hope you got all your answers.
Frequently Asked Questions On Bitcoin Price Hike
1. Why are Bitcoin prices increasing?
Bitcoin has recently witnessed a series of positive news. From being accepted as a legal tender in El Salvador, to the current launch of Bitcoin Future ETF, the digital currency world believes that the acceptance of Bitcoin as a class of asset or even a medium of potential store of value or exchange is highly likely. These reasons cater to the rise in the price of Bitcoin.
2. Are Bitcoin prices expected to go up?
There is a good opportunity that Bitcoin will see major growth in 2021. As per a report, the crypto market is more likely to increase to $100,000 this year instead of decreasing to $20,000.
3. What will bitcoin be worth in 2030?
The Winklevoss twins who are the famous Bitcoin billionaires have made a Bitcoin price prediction and have asserted that Bitcoin carries the potential to attain $500,000 by 2030, which would put its market capitalization on par with that of gold, which is operating at around $9 trillion.