•2 years
What influences the bullish market in BTC?
- Halving, the reward for mining BTC is reduced by half, which limits the production of new coins. The mechanism defines the finite nature of the process of mining the largest cryptocurrency. Furthermore, as the reward decreases, the supply shrinks. If demand increases with limited supply, the price of bitcoin may rise. Therefore, the currency is attractive to investors.
- Supply shock, the concept of supply shock in the case of Bitcoin is related to the fact that it is a cryptocurrency with a strictly limited supply, totaling only 21 million coins, of which over 18 million are already in circulation. Potential shortage of BTC is one of the factors that can lead to a supply shock, in which demand significantly exceeds available supply, which in turn can raise the price of this cryptocurrency.
- ETF, The U.S. Securities and Exchange Commission (SEC) has approved the entry of Bitcoin ETFs onto the stock exchange, which reflect the prices of bitcoin, the most popular of cryptocurrencies. This theoretically opens the way for simple investments in this cryptocurrency for hundreds of millions of ordinary investors.
- Halving, the reward for mining BTC is reduced by half, which limits the production of new coins. The mechanism defines the finite nature of the process of mining the largest cryptocurrency. Furthermore, as the reward decreases, the supply shrinks. If demand increases with limited supply, the price of bitcoin may rise. Therefore, the currency is attractive to investors.
- Supply shock, the concept of supply shock in the case of Bitcoin is related to the fact that it is a cryptocurrency with a strictly limited supply, totaling only 21 million coins, of which over 18 million are already in circulation. Potential shortage of BTC is one of the factors that can lead to a supply shock, in which demand significantly exceeds available supply, which in turn can raise the price of this cryptocurrency.
- ETF, The U.S. Securities and Exchange Commission (SEC) has approved the entry of Bitcoin ETFs onto the stock exchange, which reflect the prices of bitcoin, the most popular of cryptocurrencies. This theoretically opens the way for simple investments in this cryptocurrency for hundreds of millions of ordinary investors.
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