Learncrypto: What has been happening in the bitcoin market
The crypto market has experienced a flurry of excitement due to a massive bull market phase. Bitcoin entered this bull cycle after its having in May 2020, and as its price has grown exponentially, this trend was also noticeable in other cryptocurrencies on the market. If you're new to the crypto world and you want to learn what the factors are that impact the crypto bull runs, here we cover the major reasons for this current bull market phase.
Source: UGC
Bull Cycle of Bitcoin
Bitcoin is one of the best performing cryptocurrencies in the last ten years, and it is also the one that has the largest market cap. Since its launch in 2209, it has amassed a huge database of users. Actually, there are over 35 million verified users, while approximately 106 million people are crypto owners.
Bitcoin's popularity has been growing due to its bull run, especially in Nigeria, as a lot of individual investors are getting acquainted with cryptocurrencies. If you also want to learn more about Bitcoin and other cryptocurrencies, an excellent site is learncrypto.com, where you can find out everything about crypto trading, basic information about cryptocurrencies, and many other important topics.
When it comes to Bitcoin's bull market phase, the main factors that have triggered this rise are digital scarcity, Bitcoin having, and increased institutional support. The halving is an event that reduces the available supply of BTC by halving the block reward of the miners. After this event, as the available supply is pretty low compared to the increasing demand, the price is rising.
Furthermore, the overall supply of Bitcoin is already fixed to 21 million, which only makes Bitcoin a scarce cryptocurrency. In other words, Bitcoin is a rare asset that is appreciating due to its decentralized nature. To sum up, for a lot of investors, cryptocurrencies are more than an alternative currency, and crypto investments are even considered an investment in safe-haven assets.
Institutional Investments
But what really drove this bull cycle to record-breaking milestones was the institutional interest and support from brands like Tesla, PayPal, and other big companies. One example is the support of Ellon Musk, one of the richest men today, who has announced that Tesla will accept BTC payments, and on top of that, he also made from corporate cash a huge investment in BTC of $1.5 billion.
Moreover, we also see the rise of crypto trust funds and other investment companies which allow accredited institutional investors to invest in crypto. So, the demand is growing due to large institutional investments. Some of the corporations that have made crypto investments are the Boston Private Wealth LLC, Rothschild Investment Corporation, among many others.
Price History
When it comes to the price of Bitcoin, it has surged from an initial price of $9.999 dollars in May 2020 to an amazing price of $60,000 in March 2021. This was a rise of over 224% in less than a year. When it comes to other cryptocurrencies, they have also experienced bullish cycles because a lot more people were getting interested in cryptocurrencies in general due to the incredible growth of Bitcoin in such a short period of time.
For example, Litecoin has achieved growth over the past year, and it hit a price of more than $220 in 2021. In comparison, this is its highest price since 2018. Moreover, Ether's price surged over $2,000 in February 2021. New cryptocurrencies are also gaining momentum. For example, Cardano has entered a bull market phase, and its price has climbed from $0.102 in November 2020 to $1.23 in March 2021. This is incredible growth for Cardano of 2,000% during the last 12 months. This growth cycle is also present with many other altcoins, so investors have a lot of choices when it comes to cryptocurrencies.
Final Thoughts
Another reason why there is a significant growth in many cryptocurrencies is the accessibility of online trading sites. You can choose from a variety of trading sites that feature state-of-the-art technology. They also make it easier for a lot of new investors to learn about cryptocurrencies and start trading online. So overall, there are a lot of factors that make cryptocurrencies an important asset in the portfolios of a lot of institutional and retail investors.
[Sponsored]
Source: Legit.ng
