REASONS WHY BITCOIN GETS HIGH IN THE CRYPTO MARKET 💰🔥

Bitoin prices continue to rise and print fresh highs as speculation continues to grow around a favorable outlook toward crypto from the incoming Trump administration. To further support these rumors, leaks about a potential White House crypto expert appointment and rumors of Trumps social media companies interest in a buyout of crypto trading firm Bakkt has aided the rally. 

The Crypto Fear and Greed index shows markets are in a period of extreme greed.

 Bitcoin reached another historic milestone as its exchange rate with the dollar rose just shy of the psychologically important $100,000 threshold.

A few years ago, predicting such a meteoric rise was the pastime of a tiny contingent of “bitcoin maximalists” – people who believe that the broad adoption of bitcoin was inevitable.

Now that bitcoin is on its way to 100K, they must be recognized for having been right about a lot of what they predicted. As Steve Jobs said, “Here’s to the crazy ones. The misfits. The rebels. The troublemakers.”

Why Does Bitcoin’s Price Keep Going Up?

Bitcoin is a digital asset that is used by hundreds of millions of people, yet remains absolutely scarce. That means that the more widely it is adopted, the more purchasing power is carried by any fraction of the total.

The number of units of bitcoin that can ever exist is hard-limited. You can know with mathematical certainty that bitcoin’s supply cannot be printed, inflated, or counterfeited.

No matter how much the human population grows and adds productive economic participants, no matter how much AI, robotics, and other breakthrough technologies grow the economy, and no matter how far humanity reaches into the solar system and beyond – there will be a maximum of 21 million bitcoins for all of us to share.

Each new person that uses bitcoin to store the fruit of their labor slices off smaller and smaller pieces of the overall pie. We will never run out of bitcoin because it is digital, so it can theoretically be divided into infinitely small pieces. Even if we had a single bitcoin to share across the entire global economy, we could use it just as well as if there were billions of bitcoins.

The specific number of bitcoins that can ever exist – 21 million – is arbitrary. More important is that the quantity of units is fixed to any number, because it means that the more it is adopted by people and institutions, the more that purchasing power rises for any tiny piece of the total supply.

Semitransparent Bitcoin symbol laid over a rising chart.

Andriy Onufriyenko/Getty Images

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Bitcoin’s price has been on a roller coaster ride since it first debuted in January 2009, but the long-term trajectory has been higher – “up and to the right,” as they say. Bitcoin ushered in the age of cryptocurrency, but it took quite a while before the public sat up and took notice.

Still, in little more than a decade, cryptocurrency, and in particular, Bitcoin, has become one of the most exciting trading opportunities in a long time. Bitcoin trading has created millionaires, though given that persistent rise since its debut, plenty of traders would have done fine just holding – or HODLing – on for the ride, as many long-term bullish owners have done.

Despite the long-term rise, Bitcoin has been dogged by periods where it’s fallen precipitously. The most recent has been from November 2021 through 2022, when the prospect of rising interest rates and reduced liquidity in the financial markets sent Bitcoin’s price much lower.

Bitcoin was unleashed in the months after the global financial crisis obliterated economies. It was created by a mysterious individual or group known as Satoshi Nakamoto, and early proponents touted the currency’s promise of moving monetary policy out of the hands of governments and central banks and into an autonomously managed system.

Bitcoin famously has a maximum of 21 million coins that can ever be created. In the face of this fixed supply, an ever-increasing demand can send the cryptocurrency soaring. Given these dynamics, speculators have rushed into the space to take advantage of the anticipated price appreciation.

The price of Bitcoin is notoriously driven by sentiment. When the market shifts to its “greed” phase, Bitcoin soars amid the utopian promises and speculators dismiss the risks of an asset that generates no cash flow. In the “fear” phase, Bitcoin’s price seems to find no traction, as sellers push its price lower amid bad news or general market malaise.