Bitcoin has amazed us all by rising at such a rapid pace. The continuous rally has resulted in the cryptocurrency price to rise from $20,000 to $27,000 in just a few days. But this constant rally and has attracted the attention of the US regulators. And now, the most sought cryptocurrency, bitcoin, is under the inspection of the US government. Well, I think the rally is completely natural as it has the backing of huge investors, and there is nothing fishy to be found. But let’s see!
Bitcoin’s price rise
The huge backing from corporates and retail investors has led to the price hike of the cryptocurrency. Big companies like MicroStrategy and Square have invested a percentage of their cash reserves in Bitcoin, expecting good returns. While on the other hand, the currency is now being treated as an asset. Yes, some personalities and influencers still think Bitcoin investment is just gambling, but they are in the minority here. I personally remember writing how bitcoin has made a new high at $23k just some time back, and now it is trading at $27k.
Many investors and big players are also expecting the bullish nature of the currency to continue in 2021. And with the pace with which it’s rising and the popularity suggests that it will also become mainstream in 2021. Banks conducting surveys have been predicting that 12% of people think that the currency might cross $100,000. And around 41% thing it will range between $20k-$50k.
How can regulators disrupt the market?
Any form of money market sees gains if there is a positive atmosphere. And the fact that Bitcoin is under inspection by the government changes that. So, if fear creeps in the mind of the users, then the rate with which Bitcoin is growing now will reduce drastically. We might even see the prices falling because of the authorities trying to control the market. The future of Bitcoin will also depend a lot on the current US government. This is because trump was actually not in favor of Bitcoin. So, Biden’s move will also decide the future of the cryptocurrency.
What are your thoughts on the humongous price rise of Bitcoin? And do you think the fact that Bitcoin is under inspection will affect its performance? Do let us know in the comments below. Also, if you found our content informative and useful, do like and share it with your friends.