Why is Bitcoin growing?

Bitcoin is a cryptocurrency, which is a payment system, and has a share of more than 40% of the total market capitalization. Despite problems with scaling and transaction speed, BTC remains the most popular coin among investors primarily due to trust and established stereotypes. The history of quotations shows pronounced extremes, each of which is higher than the previous one. The cryptocurrency market remains buoyant even in periods of temporary lull. Will Bitcoin be able to make new historical highs in the next few years? Will Bitcoin grow at the same rate in the future? What makes Bitcoin grow and what are the main factors influencing it? You will find the answers to these questions in this overview.

Why Bitcoin is growing. The main factors affecting the value of BTC:

Cryptocurrency market fundamentals. Forks and hard forks, bankruptcies of cryptocurrency exchanges or top startups, increased investment in cryptocurrency technology, etc.

Regulators' position. Steps taken by regulators towards the acceptance of cryptocurrencies and, in particular, VTCs as a means of payment and investment assets have a positive effect on the price. Conversely, restrictions on cryptocurrencies and cryptocurrency exchanges push the price down.

Macroeconomic statistics. The state of the global economy, changes in the Fed's discount rate, etc. Investors tend to move money into more profitable assets.

Speculative capital. Influences the price in the short term. If the PTC price begins to grow under the influence of some or other factors, short-term investors see an opportunity to earn money and accelerate the growth of the price with their purchases. On reaching a strong resistance level, long positions are closed, and a wave of price decline begins.

Actions of media persons. Forecasts of leading analysts, tweets, and other actions of Influencers. Halving. Reducing the remuneration of miners for mining VTCs reduces the supply of coins in the public domain and thereby pushes the price up. The mechanism of halving is built into the blockchain and occurs on average every 4 years. Limited issuance. The number of VTCs is limited. And the closer the number of mined VTCs will come to the limit, the higher will be the value of the coin. Bitcoin has the greatest influence on the main trend of the entire cryptocurrency market.

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