Bitcoin breaks through the key 100 thousand dollar levels, so what are the reasons for this rise
Bitcoin broke previous records, hitting the highs of 100 thousand dollars for the first time, reaching an all-time high of 104,000 dollars on Thursday.
So what are the main factors fueling the rise:-
1. Fed Chairman Powell compares bitcoin to gold.
Fed Chairman Jerome Powell discussed bitcoin during the New York Times DealBook summit, when asked about bitcoin, Powell said people use bitcoin as a speculative asset, right It's just like gold, except it's Virtual, that is, digital. It is not used by people as a form of payment or as a store of value, and it is also very volatile, and it is not a competitor to the states, but in fact a competitor to gold.
Many considered this comparison with gold, which is considered a traditional store of value, as another strong legitimization of bitcoin in the financial ecosystem.
2-Russian President Putin indicates openness to bitcoin.
Russian President Vladimir Putin made comments during the Russia cool forum that many interpreted as an endorsement of bitcoin.
Where Putin said, ' who can ban bitcoin?' No one.
Who can prohibit the use of other electronic payment methods No one.
Because these are new technologies, and no matter what happens to the dollar, these tools will somehow evolve because everyone will strive to reduce costs and increase reliability.
3-Donald Trump won the presidential election.
The most important reason for this strong rise, especially the one that occurred in November, is considered to be due to the arrival of Donald Trump to the White House again, as president-elect Donald Trump, during his election campaign, pledged to create a strategic reserve for bitcoin in the United States.
He even suggested that part of the US debt could be repaid using bitcoin.
David Bailey, CEO of BTC Inc and an adviser to the Trump team, also stressed that the creation of a strategic reserve for bitcoin is a national priority in the first 100 days of the Trump administration.
And we need an aggressive plan for the development of the relative US ownership of bitcoin supply.
4. strong spot market demand and institutional interest.
The rally was supported by strong activity in the spot market and significant institutional participation, and funding rates also reached unprecedented levels, surpassing the peak seen two weeks ago when bitcoin reached the levels of 99,500 dollars.
The psychological resistance level of 100 thousand dollars was also breached, which previously resisted a large upward movement.
