The post Why Bitcoin Is Surging Today? 5 Key Reasons Behind Its $106K Breakout appeared first on Coinpedia Fintech News
Bitcoin has hit a new all-time high, soaring past $106,000 and pushing its total value to over $2 trillion. The surge comes as pro-crypto policies are in motion and MicroStrategy, Bitcoin’s top accumulator, joins the Nasdaq 100 Index, boosting investor confidence for even higher targets like $120,000.
Here Are the Top 5 Key Reasons Why Bitcoin Is up Today
But what’s driving this insane surge let’s just sit back and read on Anthony Pompliano’s take on his video analysis on Bitcoin’s New ATH high.
First, demand for Bitcoin is increasing as more people view it as a reliable way to protect their money. When more buyers enter the market, the price naturally goes up. Pompliano explains as the value of the US dollar drops, investors are looking for better ways to protect their money. Bitcoin, being a digital form of money that no one controls, is becoming more popular with investors who want to guard their wealth against rising prices and weaker currencies.
Second, Bitcoin has a fixed supply of 21 million coins, which makes it unique. Unlike traditional currencies, no one can create more Bitcoin. This scarcity increases its value over time, especially as demand grows. Moreover, Pompliano explains the typical cycle of demand and supply. On the other hand, the Federal Reserve is going to cut interest rates again on 18th December to get us to 100 basis points. Further pumping the money supply and adding buying pressure. With limited supply, the price naturally goes up.
Third, big investors, including large companies and financial institutions, are now investing significant amounts of money in Bitcoin. This adds more trust and credibility to the market while injecting large amounts of capital, driving the price higher. He also highlights that Bitcoin ETFs, approved in January 2024, made it easier for investors to access Bitcoin. Since then, Bitcoin’s price has doubled, with tens of billions of dollars flowing in from Wall Street.
Fourth, global economic uncertainty is pushing people toward Bitcoin. Rising inflation and weakening currencies in many countries make people look for safer places to store their wealth. Countries like Russia, and Japan are eyeing Bitcoin to stabilize their economy. Since, Bitcoin is seen as a digital alternative to gold, which protects against economic instability.
“December” Brings Hope
Finally, other factors pilling in to push BTC up are comments from Larry Fink, CEO of BlackRock, who has been a vocal advocate for Bitcoin, with the firm recommending a 2% Bitcoin allocation for financial portfolios. This increased demand, alongside the growth of Bitcoin ETFs, is driving the price higher. Plus, recently Trump’s plans to create a Bitcoin Reserve also created ripples in the market with high expectations of creating it a mainstream financial investment option on a global scale.
