5 reasons for Bitcoin’s rise

1. President Joe Biden is active in tax policy

There are also opinions that President Biden’s tax policy will play a key role in driving the rise of bitcoin prices. Experts predict that surging demand for savings could diverge elsewhere in the stock market, and that bitcoin could be seen as one of the alternatives.

2. Bitcoin, into the mainstream… Payment with global company Bitcoin

This year’s central bank’s unprecedented monetary easing policy and consequent inflation concerns fueled the demand for hedging, which is said to be the background of the uptrend, but above all, there is an explanation that there is an expectation for the entry of cryptocurrencies into the mainstream. With some central banks showing interest in cryptocurrencies, famous companies announced that they would accept Bitcoin as a payment method.

3. US Securities and Exchange Commission, friendly to cryptocurrency

According to the cryptocurrency industry, the outlook for the industry following the inauguration of US President Joe Biden is generally positive. This is because the new cabinet is organized around people who are positive about cryptocurrency. A representative example is the appointment of former chairman of the Commodity Futures Exchange Commission, Garry Gensler, as the new chairman of the Securities and Exchange Commission (SEC).

SEC Chairman Jay Clayton, a former predecessor, was a person who opposed the introduction of a cryptocurrency listing index fund (ETF). On the other hand, in the case of the new chairman-nominated Gary Gansler, he taught blockchain technology and digital currency as a senior advisor at the Massachusetts Institute of Technology (MIT) Media Lab Digital Currency Research Institute. As he has a high understanding of virtual currency, he is evaluated as a friendly person in the industry.

4. Pass of the new Policy for Blockchain

The fiscal expansion of the new government is expected to have a positive impact on the US economy as well as the global economy as it leads to an increase in import demand in the US due to active US consumption and investment.

Economic stimulus measures can have a positive effect on Bitcoin by greatly easing the financial conditions in the US. It will also boost the US economy and further stimulate investors’ appetite for high-risk assets. However, if the pandemic prolongs or disrupts major fiscal bills, it may take a considerable period of time for the US economy to return to its pre-crisis growth path.

5. Matured Blockchain Technology

A stable blockchain technology infrastructure has been prepared through 10 years of long development and complementary work. Preparations have been made for the blockchain technology to be reflected in various industries, and it is expected that finance and industry will be integrated into blockchain technology to change the game of the existing financial industry.

Reference : Blockchain News