• Stonking

More Stimulus packs = More Bitcoin investors

One of the principle reasons why Bitcoin (and other crypto currencies) had a good year post March was due to the fact that stocks, funds and currencies plummeted in value as COVID-19 broke out, and later struggled to reach their original before the break out. The value of the US Dollar plays an important role in this dynamic, and as the USD continually dropped in value due to stimulus packs and other factors, investors exchanged their USD into commodities like Gold, Silver, and Bitcoin.

Fast forward a few months, and these same investors not only held their value more than the dollar did, but gained a ton of value. BTC was around $6,000 in March, compare to $41,000 of today makes up a 600% and more by now.

Now with the release of further stimulus, investors are again choosing to reshuffle their currencies into BTC, ETH and other crypto - which accounts for some of the whale buys we are seeing daily lately.

So to conclude, although the acceleration of gain for crypto seem insane at the moment, this increase in interest by further investors are the culprits for massive pumping leading to surges of over $3,000 daily for BTC's value. Although it seems like a pump and dump, and could actually lead to this if further investors keep pumping BTC and adding volatility to an already very volatile instrument - crypto may have a correction, but one that will be quite stabilising for it as a currency, and will continue to prove as a stable investment throughout 2021.

Ref [1] [2]

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