The Recent Price Hike in Bitcoin!

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The recent price hike in Bitcoin!

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Regaining momentum, Bitcoin surpassed the $20,000 threshold on Monday for the first time since November. According to Coinmarketcap.com, the most well-known and valuable cryptocurrency in the world by market capitalization increased 0.70 percent to $20,817.37 at 6:00 IST. In the previous day, the market capitalization of bitcoin climbed by more than 0.63 percent to $40,101,586,225. Many people were taken aback by the unanticipated gains against the backdrop of the market's ongoing negativity.


Why is Bitcoin increasing?

The Cryptocurrency market may have increased in anticipation of a potential slowdown in the Federal Reserve's (Fed) rate increases following a minor decline in inflation in December, according to experts.

The financial market, gold, and bitcoin have already been impacted by inflation. However, according to Kumar Gaurav, founder & CEO of Cashaa, a cryptocurrency neo-bank, the institutionalisation of Bitcoin and a number of Fed initiatives last year may have been beneficial for Cryptocurrencies.

In anticipation of the alleged "halving event" in 2024, analysts are likewise optimistic about Bitcoin. It has been noted that Bitcoin's miner rewards are halved every four years (3.125 BTC). Additionally, the supply declines, which is seen to be advantageous.


The rise in price of bitcoin:

The fall of Terra Luna, the bankruptcy of FTX, the largest cryptocurrency exchange, and concerns over global socioeconomic unrest all contributed to the nearly 65% decline in the market value of bitcoin in 2022.

"The growing demand for Bitcoin is the primary reason driving up its price. Bitcoin's demand rises as more people and organisations start using it as a form of payment, according to Sathvik Vishwanath, co-founder and CEO of cryptocurrency exchange Unocoin.

Furthermore, Vishwanath concludes, 'as knowledge and curiosity about Bitcoin grow, more people buy and hold the cryptocurrency, which fuels demand.'
 
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