What are the factors contributing to the swift rebound of bitcoin above $20,000?

1 answers

• RickAnjosNov 20, 2023 · 2 years ago
  The swift rebound of bitcoin above $20,000 can be attributed to a combination of factors. Firstly, the growing interest and adoption of bitcoin by institutional investors has brought a significant amount of capital into the market. Institutions like Grayscale Investments and MicroStrategy have been actively buying and holding bitcoin, which has increased demand and pushed up the price. Secondly, the ongoing economic uncertainty caused by the COVID-19 pandemic has led to a search for alternative investments, with bitcoin being seen as a safe haven asset. The limited supply of bitcoin and the halving events that occur every four years have also contributed to the rebound. As the supply of new bitcoins decreases, the existing supply becomes scarcer and more valuable. Lastly, the increasing accessibility of bitcoin through various cryptocurrency exchanges has made it easier for retail investors to participate in the market, driving up demand and contributing to the swift rebound.
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