By Qamar Ul Islam
On Sep 11, 2020
As the principal cryptocurrency- Bitcoin is again on the rise. This rising trend is around for a while. Since July 20th, Bitcoin began to surge in value in contrast to USD. Bitcoin hit the 12k on August 16th, and it hit 12k again on September 1st. We will examine some reasons for this growth.
One of the main reasons for the increase in value is the USD factor. It is wildly known that USD and Bitcoin have an inverse relationship, and it is true for most cases. Since mid-March, the USD index is dropping down, and the data for September 1st the index is 92.10. This is the consequence of the actions of FED because they were lowering the interest rates. This trend seems to continue to drop. This decline in USD affects the price of Bitcoin. Traders sell dollars and buy Bitcoins until they notice no further advancement in the prices. This basic demand-supply affects the price of Bitcoin.
Another reason could be the bullish market. The world economy is on the rise, and this affects the financial markets. We experienced the price of Ethereum hit the 476 USD since July 19th, 2018. The whole market is in the surge, and we can expect that prices will be high for quite a long time. Finally, as the main cryptocurrency- Bitcoin will hold its place in the financial markets. The hike in prices can be efficiently utilized by traders or individuals.
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