The second reason for the surge, according to Cameron Winklevoss, is the increase in the adoption of decentralized finance (Defi).
This, in turn, is leading to a surge in the price of Ethereum, Cardano, and other decentralized networks. At the time of writing, the price of Ethereum ETH was $385.90. It is up by 6.04% against the USD and up by 10.37% against Bitcoin BTC. The trading volume over a 24 hour period is $20,222,354,425 and the market capitalization is $43,226,140,313.
While the price of Bitcoin BTC is currently bullish and the bull run is most likely as a result of the variables mentioned above, Bitcoin will need more juice if it is to enjoy a more sustainable bull run long-term. According to the latest report by Fidelity Investments, five factors will help Bitcoin reach and maintain a significant bull run in the long run. In his words;
“BTC acting as a hedge against low-interest rates.
Political and economic forces driving deglobalization, which may push the cost of goods higher.
Wall Street commentators like Paul Tudor Jones acknowledging Bitcoin.
BTC acting as a long-term hedge against inflation risks.
A “great wealth transfer” that will put wealth into the hands of more tech-savvy millennials, driving demand for Bitcoin over other asset classes.”
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
- Bitcoin and Altcoins Have been Rising for the Last Few Days, Despite Minor Corrections
- Analysts Speculate on the Cause for the Fall in the Price of Cryptocurrencies
Over the last few days, there has been a lot of excitement in the cryptocurrency market. People who don’t have cryptocurrencies regret not buying the tokens right now because of the surge in the price of Bitcoin BTC and many other altcoins.
According to cryptocurrency analysts, there are two primary reasons for the 20% surge in the price of Bitcoin over the last few days. They explained why the total market capitalization of all cryptocurrencies increased by over $1 billion over the last seven days.
Activities Surrounding Bitcoin and Ethereum are Behind the Rally
Taking to Twitter, one half of the Winklevoss twins, Cameron Winklevoss, Bitcoin is surging because of an increase in the demand for Bitcoin due to the crisis in the global financial system. He said that people are hedging inflationary risks with Bitcoin.
This inflationary risk is a direct result of central banks increasing the rate at which they print money for the government. According to him, this is what led the price of Bitcoin BTC to move as high as $12,000 yesterday.
Even if the token corrected lower shortly after reaching this level, it is now moving highly steadily. At the time of writing the price of Bitcoin BTC was $11,187.20. It is up by 3.82% against the USD with a trading volume of $29,684,240,046 and a market capitalization of $206,397,560,347.