From institutional investors, big endorsements and the Bitcoin halving, here are 5 key reasons for Bitcoin’s rising price.
In brief
- Bitcoin’s price has been increasing for months, and there are several reasons behind the surge.
- High-profile figures and companies have expressed support for Bitcoin.
- Other reasons include Bitcoin halving, which also has a direct impact on Bitcoin’s price.
The price of Bitcoin is above $16,000, having broken through for the first time in three years. Its current price of $16,081 represents a 28% increase in value over the last three months.
It’s been a rapid rise since March, when Bitcoin drastically fell to
its lowest point of the year, touching as low as $4,000. The coin has continued to bounce back and has fought its way above the $10,000 price point, going on to make new recent highs—and hit values not seen since Bitcoin’s epic 2017 bull run. Yet this time, an entirely different set of circumstances are accelerating Bitcoin’s price to new highs.
Why is Bitcoin going up?
There are a multitude of reasons for Bitcoin’s price rise. Investment from large institutions like MicroStrategy have led the way, as have major companies like Grayscale managing Bitcoin for their own clients. What’s more, it’s now easier to buy Bitcoin since PayPal began letting people buy and sell Bitcoin.
Bitcoin’s total supply has also halved, and this has also played a role in Bitcoin’s price increase. Each of these individual factors have combined to generate an impressive bull run for Bitcoin during the second half of 2020. But it all began with MicroStrategy.
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