The Bull Run in the crypto market isn't over yet, here are 5 reasons why
Crypto Bull Run
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The Bull Run in the crypto market isn't over yet, here are 5reasons why
Here are the top five reasons why it’s not just over for the bull run in the crypto market.
1.Pent-updemand: With employment dropping because of the pandemic, people certainly looked at other sources of income, and crypto came as a blessing in disguise in 2020. But that doesn’t mean this enthusiasm will soon fade away.
2.Massadoption: Recently El Salvador became the first country in the world to adopt bitcoin as an official legal tender, where its president decided to give away up to $30 of free bitcoin to the citizens. Similarly, Panama is reportedly planning to follow its steps, and so are many other countries that are looking to create their digital currencies.
3.Bansand crackdowns: A blessing in disguise? Negative comments from some expert economists like US treasury secretary Janet Yellen, Tesla announcement to stop the acceptance of Bitcoin as a legal tender for its purchases, or China’s recent crackdown on Bitcoin mining proved to be a punch to the crypto market. But in the long run, all this might seem like a blessing in disguise.
4.The ‘golden’ cross: A golden cross refers to a situation when an asset’s short-term moving average price crosses long-term moving average. For Bitcoin, this happened in September, along with another different kind of golden cross.
5.Scarcity driven by Bitcoin halving: Given the limited availability of bitcoins in the market caused by the halving every 4 years (a slash in rewards derived by mining a valid block of Bitcoin by the miners), there’s considerable pressure from the demand side for this asset. As basic economics principles state, higher demand and lower supply lead to higher prices for assets.
It's only been a week, but the bulls have come back to the table. It seems like a matter of time before we find out which cryptocurrency has what it takes to take over Bitcoin.