Bitcoin has been enjoying one of the longest and steepest rises in value in its history. Earlier while preparing to write about this new milestone, we saw the value go beyond the $35k mark. However, shortly after that, the value seemed to drop a little bit and settled just above the $34k mark. Earlier tonight, the value jumped back up and went beyond the $36k mark, making it the highest ever in the history of Bitcoin. That level of increase shows how persistent the bull market is for Bitcoin trading and the traders are staying put as well.
The price of Bitcoin is certainly gaining a lot of momentum and it is very much visible if you look at its performance during the last couple of weeks. Not only that, but the exchanges have also seen a consistent increase in the volume of Bitcoin trading. Of course, like any market, the fluctuations are there and in the case of the Bitcoin revolution, most of them have been noticeably steep. After crossing the $36k mark, the value of bitcoin seems to be fluctuating rapidly between $34k and $36k.
The biggest action in this entire episode is traders cutting leveraged ratios everywhere. Multiple exchanges have witnessed this and CryptoQuant also published charts on their twitter showing this effect. According to Ki Young Ju, the company’s CEO, the rapid changes are happening because the traders are feeling scared and uncertain about where the market may go next. However, the new highs being achieved by the cryptocurrency are showing a better picture of where the market may be heading in the coming days.
Matt Kaye who is the managing partner at Blockhead Capital shared his views about the fluctuations as well. He said, “It’s rather simple I think, there are more spot buyers than spot sellers going into a year that is likely going to transform U.S. fiscal policy for the next decade.” Blockhead Capital is an investment firm based in Santa Monica.
From the political aspect, it is a strong belief that a huge part was played by the senate election results in the state of Georgia. With Democratic leadership in control of the Congress, bitcoin traders are worried that the inflation problems could become worse. The inflation would have a direct impact on the value of Bitcoin as well because of the direct competition it has developed against the US Dollar and other currencies for that matter. The value of Bitcoin has more than tripled during 2020 and in January 2021 alone it has gained more than 20%. Many believe that the biggest contributor to this is the massive amount of investment being made by several major financial institutions.
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