A handful of factors are highly contributing to the upwards trend in bitcoin price

Since last month, the bitcoin price has continued to go on an upward march towards the moon. Yesterday, the digital token broke its own record and created a new all-time high by touching US$68,000, which is anticipated to grow even further in the coming days. The surge in bitcoin price has sent the cryptocurrency market capitalization to above US$3 trillion. However, the surge and increase in the adoption of bitcoin is not a natural change. A handful of factors are highly contributing to this trend.

The new ATH has stepped over bitcoin's previous record high of US$67,700 from late October. Unfortunately, the popularity of Shiba Inu and its rife with dogecoin has silenced the surge of BTC, pushing it back to its moderate US$58,000 to US$63,000 trading value. Following bitcoin's price rally, other cryptocurrencies like ethereum also experienced an increase in value as they breached its US$4,800 resistance. The bitcoin ATH came at the backdrop of announcements over financial market information service firms' initiative to hire more cryptocurrency professionals. According to reports, Wall Street banks including Goldman Sachs and Well Fargo are fishing to recruit a huge number of cryptocurrency experts to support their growing interest in the decentralized ecosystem.

Being the world's best-performing asset for over a year now, bitcoin had its own set of ebbs and flows throughout its journey. Although bitcoin witnessed immense growth over a million times in value and opportunity, its volatility and breakage from the government is a matter of concern. However, every growth and plummet in BTC price is pegged to something that happens at a time. For example, the July 2021 price decrease was because of speculations over extreme energy consumption. On the other hand, the recent record high was triggered by the debut of the bitcoin ETF in the New York Stock Exchange. In this article, Analytics Insight lists some of the facts that could help bitcoin break new records in the future.

Bitcoin as a Foremost Payment Model

Today, an increasing number of people are adopting cryptocurrencies solely for their easy-to-trade option. Besides, some platforms even provide these transaction facilities at a very low fee. Similarly, a significant percentage of the bitcoin craze can be contributed to its usage as an everyday payment model. For example, Paypal has recently announced that the platform will allow its users and merchants to buy, sell, hold, and accept bitcoin and other cryptocurrencies as a form of payment. With over 350 million users from across the globe, PayPal's announcement drastically triggered bitcoin's price. Similarly, much other money exchange platform has also allowed bitcoin transactions in the past few months. On the other hand, the possibility to earn from buying and holding BTC tokens has also interested new investors.

Preference over Gold

Although gold was considered a traditional and profitable form of investment so far, the recent cryptocurrency trend has put it at disadvantage. Worried about the rising inflation on gold and other alternative investment models, investors or buying bitcoins instead to add value to their portfolio. Even JPMorgan has predicted that bitcoin could rally as high as US$146,000 in the long run as it completes with fold as an alternative currency.

Increase in Institutional Adoption

Bitcoin was created with a motive to stand alone and shield against inflations. The Wall Street collapse in 2009 is an example of how bad the economy could go if government agencies and banks are hit by catastrophic economic conditions. Therefore, many institutions are gearing up their crypto game by investing in digital tokens, especially, bitcoin. They are considering bitcoin as a safe haven against volatility and inflation.

On the other hand, large corporations are also converting their cast assets into bitcoin. Notably, a business analytics company, MicroStrategy, has converted US$425 million worth of cash in its treasury to bitcoin, creating a strong foundation for institutional investors.

Bitcoin Halving Triggers Investment

A limit or a bar on anything could put the item on scarcity. That is something Satoshi Nakamoto has got right when he created the bitcoin whitepaper back in 2009. There are only 21 million bitcoins that can be mined in total and as of August 2021, 18.77 million have been already mined, leaving only 2.3 million to be introduced into circulation. Bitcoin halving is also an important event in the bitcoin network that happens roughly every four years. Bitcoin mining is the process that introduces digital tokens to the crypto market. The reward for mining is reduced by 50% every four years in terms of bitcoin halving. So far, every time bitcoin halving takes place, it puts the cryptocurrency's price at a drastic upward trend.