The price of Bitcoin, the market-leading cryptocurrency, has risen by more than 4% in the last 24 hours.
Bitcoin has continued its upward movement this week, pushing its price above $50.000 per unit.
The last time Bitcoin was trading above this level was in December 2021, almost 3 years ago.
What drives Bitcoin price up?
There are several factors that may be driving the price of Bitcoin up, such as the accumulation of the cryptocurrency by crypto whales, the growing institutional interest and demand, and even the support that the current president of the United States, Joe Biden, seems to have given to Bitcoin with the publication of an image of himself sporting “laser eyes.”
Biden shared a profile photo on X (formerly Twitter) with laser beams in his eyes, a curious trend that has taken root among Bitcoin supporters and that proclaims, within the crypto industry, the power that cryptocurrency has to transform the current system, guarantee freedom and reach a value of $100.000 dollars in the future.
While none of these were the real reasons why Biden shared an image of himself sporting such eyes, the publication of that photo generated new speculations and theories within the crypto world.
Several Bitcoiners wondered if Biden had turned bullish on Bitcoin, while others criticized his actions, which were related to the Super Bowl, and not Bitcoin. explained Yahoo Finance.
Nearly $1 trillion in market capitalization
At the time of writing, Bitcoin’s market cap is inching closer to $1 trillion.
Data from cryptocurrency price monitoring platform CoinMarketCap shows that the market value of all bitcoins in circulation is currently $983.000 billion.
Source: CoinMarketCap
The next Bitcoin halving is approaching
In addition to institutional adoption and the accumulation of bitcoins by whales, the proximity of the fourth halving of the network is also influencing its price.
The upcoming halving of the reward block miners receive for validating transactions on the Bitcoin network will reduce the supply and increase the scarcity of BTC on the market, which could have a positive impact, causing its price to rise exponentially.
Michael Saylor, president of MicroStrategy, recently said that the demand for Bitcoin is much greater than the supply of the cryptocurrency on the market.
During an interview on CNBC, Saylor emphasized that a decade of demand for Bitcoin from institutional investors remained pent up as they awaited the arrival of spot ETFs and that the current supply of the cryptocurrency, from its natural sellers, which are the network's miners, is very low compared to this demand. Considering that the halving will further reduce the rewards received by miners and, with it, the supply of bitcoins, the cryptocurrency could see its value grow exponentially in the long term.
Continue reading: Torrevieja will be the first city in Spain to officially use Bitcoin and cryptocurrencies
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
