Whats causing the re rise of BTC?

[beamin]

Is there some use case that was finally found for them? Or a easy to use consumer product? If BTC was as easy as cash app it would be huge . Its just too hard for the average person to use. Or is it just another bubble? Im ecstatic I had BTC left over from the last bubble I forgot about checked my phone which has a little wallet on it saw it had over 100$ from 30-49 last time I checked, found my trezor and cashed out all but 1000 that Im actively trading. Im no longer behind onmy rent, thanks bitcoin!

[mk4]

If you're out of the loop: The United States federal reserve has been printing the US Dollar like there's no tomorrow, effectively harming the value of the USD in the long term. This makes bitcoin useful in this case due to it's steady supply distribution, and due to the fact no bitcoin can be minted after 21 million.

Who is buying the bitcoin? That we don't know for sure, but Grayscale's number of bitcoin in custody has risen by a lot, so by this, we could make an assumption that the institutional investors might be buying in. That, or the current bitcoin holders are continuing to buy in, hence the price rise without that much hype(like in 2017) with retail investors.

[DdmrDdmr]

It seems to have a pretty silent echo so far in the mass media, so probably what we are seeing here is mainly purchases made by institutions and what is being called "smart money" from private investors. Then it’s down to supply and demand, and a maybe a bit of short-term gaming by some whales. All in all though, so far, the growth has seemingly been rather organic, which I personally prefer to a mass media hype (which will likely follow).

[Charles-Tim]

Who is buying the bitcoin? That we don't know for sure, but Grayscale's number of bitcoin in custody has risen by a lot, so by this, we could make an assumption that the institutional investors might be buying in. That, or the current bitcoin holders are continuing to buy in, hence the price rise without that much hype(like in 2017) with retail investors.

You are just very right about whales/institutions responsible for the recent bull run, I created an article about this like two or three days ago which I believe will be helpful on this thread.

The Google Trends interest is relatively low for the keyword “Bitcoin” while on-chain data shows smart money is accumulating BTC. Bitcoin (BTC) is continuing to show strong momentum even after a major rally. In 2017, when the price of Bitcoin hit an all-time high at $20,000, the retail demand was at its peak. Google Trends data soared, mainstream media coverage noticeably increased, and spot exchange volumes exploded across major markets, especially in South Korea and Japan. This time, the Google Trends interest is relatively low for the keyword “Bitcoin” while on-chain data shows smart money is accumulating BTC, which means possibly High-net-worth investors are buying Bitcoin


Bitcoin mean transfer volume. Source: Glassnode

Another Glassnode metrics paints a similar trend. The number of Bitcoin addresses holding more than 100 BTC hit a seven-month high at 16,271. And, Whales consistently buying Bitcoin over the past few months is optimistic in itself. But, Woo emphasized that the number of new whales has also increased.


The number of addresses holding over 100 BTC. Source: Glassnode

Google Trends data shows relatively low retail interest

Bitcoin search volume on Google. Source: Google Trends

Nevertheless, while the search volume for Bitcoin remains low, there is a particularly high interest coming from states like Hawaii, California, Nevada and Washington. But despite the high interests in these areas, it is still researched and known that whales are responsible for the recent increase in bitcoin price.

The fact that larger hands are accumulating BTC instead of retail investors also explains the somewhat suppressed mainstream interest in Bitcoin. Various metrics, including Google Trends, have shown lackluster mainstream demand for BTC despite its parabolic rally in recent months

Institutional "FOMO" makes the current BTC rally stronger than previous cycles
Whalemap analysts described the recent spike in demand for Bitcoin from whales as “institutional FOMO.” FOMO, short for "fear of missing out," refers to a trend wherein investors increasingly buy into an asset fearing it will continuously surge. Referring to a chart showing whale clusters and inflows into whale wallets, the analysts said: “These are the levels and this is what institutional fomo looks like.”



Whale clusters emerge when whale addresses — addresses that hold over 10,000 BTC — buy Bitcoin and do not move it for prolonged periods of time. This shows that whales plan to hold their most recent BTC purchases in their personal wallets.

https://cointelegraph.com/news/bitcoin-whale-clusters-show-institutional-fomo-is-behind-the-btc-rally
https://cointelegraph.com/news/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests

https://cointelegraph.com/news/grayscale-now-has-half-a-million-bitcoin/amp


Bitcoin Holding in Companies
https://bitcointalk.org/index.php?topic=5282052.0

[odb36]

The simple fact that there is no Bitcoins left for selling. Everybody is holding them waiting for $100+k. The 21m supply of Bitcoins is not enough for the all companies, individuals and governments interested in Bitcoin.
It seems that corporate investment drives this bull run, as prominent investors, like Raoul Pal and Michael Saylor invested half a billion each in Bitcoin and are almost double already. Their competitor fund managers and investment companies now want to follow their example.

However, the general public is still not aware of what is happening with Bitcoin. They'll probably rush when a new all time high is reached

[traderethereum]

Instead of thinking about the reason for the bitcoin price to increase, I will enjoy the moment by selling my bitcoin at a high price.
I don't know the reason, and I think other people will not know the truth because bitcoin prices can go up and down without notice.
You can enjoy this moment by selling your bitcoin and make a profit, but you can buy back bitcoin when the price is down.
Maybe you don't have to think about why bitcoin can break $18k because I am sure that bitcoin can do that again in the next few days and break the high price.
We can only guess what is happening with bitcoin, making the price jump to a high price in a short time.

[Harlot]

The market cycle right now is one of the reasons why Bitcoin is going up before March you will notice that Bitcoin was on a bearish season mostly through the year of 2019 and before that it rather had a weak bullish season before that so on a market cycle's natural course you will see a sudden reversal from what we have been seeing during the past few months. With this reversal people will connect various evens whether it is the recent Bitcoin halving or through politics but clearly there is no direct connection linking everything even its price chart is questionable seeing it rise up without a rising volume.

[NeuroticFish]

* The governments (US and others too) are printing money, causing inflation.
* The companies started to trust Bitcoin and invest huge funds into it.
* There was a block reward halving, hence miners earn less coins, hence they have less coins to sell.

I've also made not long ago a topic about some interesting numbers: https://bitcointalk.org/index.php?topic=5290241

[Coyster]

Many users and even non-bitcoiners are also curious to know why Btc price is moving up and set to cross the ath of 20k usd, thing is I just hope it does not make them start investing cause of FOMO. People tend to forget Bitcoin has had a very good year, with all indication that it will prolly break the ath soon.

Starting from the pandemic that didn't quite affect btc, while traditional institutions plunged, to the btc halving and the numerous big news of companies investing in Bitcoin and others making it their reserve asset, this year was good for btc adoption and now the price is moving in tune with the kind of year it was for btc, which is a good one.

[Welsh]

Various reasons, there is rarely just a singular reason for Bitcoin to significantly change its price. Most of the replies in this thread are on point, but also consider what I've mentioned below. You'll start to figure out that its not just one or two things, but a combination of contributing factors that effect the price.

Many users and even non-bitcoiners are also curious to know why Btc price is moving up and set to cross the ath of 20k usd, thing is I just hope it does not make them start investing cause of FOMO. People tend to forget Bitcoin has had a very good year, with all indication that it will prolly break the ath soon.

Starting from the pandemic that didn't quite affect btc, while traditional institutions plunged, to the btc halving and the numerous big news of companies investing in Bitcoin and others making it their reserve asset, this year was good for btc adoption and now the price is moving in tune with the kind of year it was for btc, which is a good one.

This will always happen, and if history repeats itself Bitcoin will rally up, and then lose value fairly significantly making many impatient investors take the loss, and therefore lose money. This will be true with any investment though, and its specific to Bitcoin. If people see something rallying up, they will invest for fear of missing out on the big bucks, ultimately if the investment you've been watching is starting to rally up the safest conclusion would be you've already missed out.

The pandemic has effected the economy of traditional currencies quite heavigly, and to be honest I've been suprised how Bitcoin has remained fairgly stable among it, except for the recent price rise. This might have got a lot of people interested in Bitcoin, which may have contributed to the recent surge, since they might believe its becoming a mature currency, and is stronger than traditional currencies for the reasons above. I can't agree with them at this moment in time, but I can see why  someone would think that. Obviously, the positive news of Paypal implementing Bitcoin within the USA has probably had an effect.

[FireBallex]

1. Better exposure since 2018
2. More reliable than stock, already proven when pandemic hit the world
3. Old haters are now supporting the technology
4. Big payment solutions are now implementing crypto payment ( PayPal)
5. Bitcoin supply got reduced every four years and 2020 is another fourth year so scarcity is growing

[mk4]

5. Bitcoin supply got reduced every four years and 2020 is another fourth year so scarcity is growing

Just to clear things up for potential misunderstandings, Bitcoin's supply per se doesn't get reduced; but it's the bitcoin being "minted" per block is what's getting halved, effectively creating a sort of supply shock when demand increases.

[hatshepsut93]

This is another bubble, just like the ones in 2013 and 2017, but this time it's mostly driven by institutional investors. What rises fast also falls fast, but the question is when will it stop - we could easily reach 50k or even 100k, the bullish market can continue for months or maybe even longer. Or maybe it will end soon. Bitcoin has always been so unpredictable, look at just last few years - so many small rallies, bearish declines, stagnations, sideways markets - no one can truly predict what happens next, it's all guessing.

[Husires]

All news will turn red when the price returns to below $ 14000, we have witnessed a period of great price increase and it has moved to many levels so you will hear the same analysts who recommend you to buy the dollar will recommend you to sell again.

Do not listen to them at times like these because it is a rising wave and everyone wants to talk about it and invest in times when everyone is pessimistic about buying.

[Insanerman]

If you're out of the loop: The United States federal reserve has been printing the US Dollar like there's no tomorrow, effectively harming the value of the USD in the long term. This makes bitcoin useful in this case due to it's steady supply distribution, and due to the fact no bitcoin can be minted after 21 million.

Who is buying the bitcoin? That we don't know for sure, but Grayscale's number of bitcoin in custody has risen by a lot, so by this, we could make an assumption that the institutional investors might be buying in. That, or the current bitcoin holders are continuing to buy in, hence the price rise without that much hype(like in 2017) with retail investors.

Indeed. But it wasn't always the huge companies and/or institution's investment to crypto that strongly affects it's price, it is them being trusted by many small investors that is composed of both crypto and non-crypto enthusiasts. By their adaptation of the crypto -- the Bitcoin in particular, the demand rises causing the market to constantly grow and move sideways as the demand and hype being in a current stability. I mean, even the news that the huge companies/institutions make, tends to hype the market (but not for those analysts that sees it to be a huge risk to the crypto)

[OgNasty]

The answer:  People are buying it.

[Coyster]

This will always happen, and if history repeats itself Bitcoin will rally up, and then lose value fairly significantly making many impatient investors take the loss, and therefore lose money.

This 'history' can very well repeat itself, and I think the investors that will be shaken by it are those who prolly joined the network not too long ago (this year maybe), or are investors who bought right after the halving ( you know many invested after that event), without any knowledge of Bitcoins history/it's historical rise and fall. Having said that, for investors who understand the Bitcoin network more and even go as far as appreciating and also using btc as a currency (money) and not only as an investment, no significant loss of value will make them sell up the stash in the wallets. What I'm saying is, the best way to invest in Bitcoin is first to understand quite a lot about it, joining the network to get rich quickly is more often than not 'counterproductive'.

[mk4]

The answer:  People are buying it.

The law of supply and demand, the sure-fire answer for questions concerning price rises and drops lol(and also my favorite reply as it's technically correct). I just stopped using this answer because I sounded too much like a broken record.

[error08]

This is another bubble, just like the ones in 2013 and 2017, but this time it's mostly driven by institutional investors. What rises fast also falls fast, but the question is when will it stop - we could easily reach 50k or even 100k, the bullish market can continue for months or maybe even longer. Or maybe it will end soon. Bitcoin has always been so unpredictable, look at just last few years - so many small rallies, bearish declines, stagnations, sideways markets - no one can truly predict what happens next, it's all guessing.

When the time comes for institutional investors to cash out, bitcoin may crash hardly, probably more than 50%. However, we don't know at what price is their target to sell-off.
Notwithstanding, the market packed with predictions to reach $30k or $50k, bitcoin seems to rise steadily at this pace to $20k by this year obviously. Let's see how much retraction it would be at that point, whether the investors going to sell or wait for the higher target.

[n0ne]

The rise of bitcoin is happening as a result of more people getting into the cryptocurrency usage. Today the price of ethereum too grown high, upon which there is more chances of gradual price increase. The market progress is happening in a much steady manner. Even if some form of price fluctuation happens, surely the price will grow further. This time the growth is not as the previous bull market of 2017.