The Bitcoin price broke the USD 12,000 mark a few hours ago. After the Bitcoin price ran sideways for almost 2 weeks and helped many Altcoins from the DeFi area to an enormous price increase, the outbreak now came. The positive news situation on the last few days has supported the BTC price and provided momentum. But the reason is not only due to the increasing interest of institutional investors, but above all to the increasing devaluation of the US dollar due to the increase in the money supply. In addition, the hype surrounding DeFi is washing more and more investors into the market who are securing part of their investment in Bitcoin. In today’s article we take a look at how things are currently with Bitcoin and whether we might be facing another bullrun.
Bitcoin price increase due to increased demand
For many, Bitcoin is still an object of pure speculation. But now the understanding of BTC and the technology behind it has fundamentally changed. Many are slowly beginning to understand that Bitcoin is the only true digital scarcity, which in theory makes cryptocurrency a perfect store of value. In addition, the negative image from the Darknet times is history and Bitcoin is increasingly becoming a recognized financial product. More and more institutional investors are diversifying their portfolios using Bitcoin, which is considered uncorrelated to most traditional assets. The regular halvings make BTC a disinflationary asset and keep boosting the Bitcoin price.