The second half of this year has seen a huge increase in the value of Bitcoin, climbing all the way to $18,000 recently. This is proving to be one of the best growth levels that the cryptocurrency has ever seen. The value almost reached $18,500 and then dropped down to less than $18,000. The fluctuation in the last 24 hours has been quite steep with Bitcoin moving between $16,560 and $18,464. When compared to its value on the same date as last year, Bitcoin is setting with a massive increase in value. This increase comes up to almost 150% and at the same time, the currency has gained 70% in value during the current quarter.
According to the managing partner and co-founder of Nexo Antoni Trenchev, “A few recent events have undoubtedly had an impact.” He said that this includes Institutional investment by the likes of MicroStrategy and Square, PayPal actively shilling crypto, and the bitcoin halving in May,” and were the most likely reason why the value was continuing to soar with every passing day. Nexo is a crypto lending company.
More people have also speculated on the reasons behind this continuous growth in the value of Bitcoin and a major reason being pointed out is the coronavirus pandemic. According to Ki Young Ju, “Interest rates are the most important factor in people’s decisions on where to deposit money.” He also said that “I’m sure negative interest rates will drive adoption in crypto whether it’s direct purchasing crypto/index funds or using staking services.” Ju is the CEO of CryptoQuant, an analytics firm specializing in cryptocurrencies.
Bitcoin is quickly reaching the all-time high value that it saw on December 17th, 2017 when it stood at $19,666. Whether or not that record gets broken before the day arrives is yet to be seen. On the other hand, ether has also been seeing a lot of growth in recent days and went up to $489. Another factor that people are attributing to the overall growth of cryptocurrencies is the way major governments around the world have been spending money to provide relief against the negative impact of coronavirus on the economy.
Three Arrows Capital’s co-founder Kyle Davies said, “I think it basically comes down to monetary and fiscal policy. Central banks can lower rates until they get to slightly negative, and then they have to print money.” He feels that this strategy will make BTC and other cryptocurrencies an attractive option for investors. At the time of writing the value of Bitcoin sits at $17,745 and Ethereum is sitting at $472.07.
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