The reasons for the bitcoin price increase
Bitcoin has continued to gain momentum in recent days, but evidence suggests a long-term price increase for these rams. In this report, we examine three factors driving bitcoin price.
1. Global stocks decline
Our trade war between the United States and China is going to benefit bitcoin dramatically. As global tensions continued to plummet, world stocks declined dramatically. As the Draper team pointed out, the Dow Jones and Nasdaq shares were down 2.9% and 3.1%, respectively. The Dow Jones stock has experienced its worst trading day on Tuesday.
2. Bitcoin Risk Coverage Tool
The current state of bitcoin has led more people to consider it as a viable and effective tool for risk reduction. As the lawyer for the coins and Blockchain field, Jake Chervinsky said on Tuesday:
This feature is considered to be a very important application for bitcoin. Because it is designed to reduce the dependence on traditional centralized financial systems. Bitcoin is currently doing exactly what it was designed for.
The CEO of Agecroft Partners, a consulting firm, said in a similar statement to Chervinsky:
This risk reduction feature will make Bitcoin a good choice among investment firms.
3.The negative atmosphere against Fiat currencies
Last week, in the wake of the trade war, the United States accused the Chinese of manipulating and regulating the exchange rate. The reason for the charge was the sudden and significant reversal of Beijing's decision to support the yuan, which allowed its price to fall against the dollar.
The US Treasury Secretary claimed that the Chinese move in turn gave China unfair trade power at a global level. China has also responded to US allegations that the United States is deliberately disrupting international order.
Kyle Bass, founder of Hayman Capital Management Company, told the media that for an average investor, an alternative currency is quite ideal. In an interview with Yahoo, he said:
If you are in Asia and China and have a limited currency system, or if you are in Hong Kong and cannot convert the Hong Kong dollar significantly to the US dollar, what do you want to buy?
Jeremy Allaire, CEO of Circle, also believes the situation has encouraged Chinese investors to engage in the market for rosemary. Allaire says:
Today, humans have succeeded in creating an independent and highly secure mechanism for storing their funds that is available wherever the Internet is.