What are the possible reasons for the rise of Bitcoin this time?1. The mining rewards for Bitcoin have been halved once again, and in the process, it heralds a fierce wave of currency deflation with less than six months left
What are the possible reasons for the rise of Bitcoin this time?
1. The mining rewards for Bitcoin have been halved once again, and in the process, it heralds a fierce wave of currency deflation with less than six months left. People's expectations for a significant increase in the price of Bitcoin are so strong. If past precedents hold true, Bitcoin should now be preparing for its legendary bull market operation; Therefore, this world's top cryptocurrency market has been performing exceptionally well since hitting the psychological level of $30000. In recent days, a series of favorable factors have gathered together, forming a sustained upward trend around Bitcoin.
2. The rise of Bitcoin is related to the Federal Reserve's interest rates. Bitcoin is the world's leading cryptocurrency, and its performance is like that of a growth focused technology stock, as evidenced by its cyclical high correlation with the Nasdaq index. The reason for this is that just as the bullish theory of high market value stocks depends on expectations of future profits, the fundamental spirit of Bitcoin also comes from its hard coded scarcity and expectations of future price increases. Of course, in the financial field, people's expectations for future cash flows are not optimistic. Therefore, analysts attempted to use the discount rate derived from the Federal Reserve's benchmark interest rate to calculate the present value of these cash flows. Generally speaking, the higher the discount rate, the lower the present value of future cash flows.
3. The United States has launched a spot Bitcoin ETF, which will provide great convenience for investors to obtain Bitcoin risk exposure without the hidden dangers of futures based ETFs. The launch of spot Bitcoin ETFs may attract about 100000 BTC of new investment within a few months, equivalent to about $3 billion of new investment at current prices.
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