The price of Bitcoin has rallied to an all-time-new-high on numerous exchanges, extending its year-to-date rise to a surprising 170% throughout 2020 that has witnessed tumultuous within global markets.

While bitcoin’s price surge is not just attracting a new category of institutional investors, however, additionally leading to new beginnings of a new set of fear and uncertainty and doubts. Here are some of the causes why the largest and oldest cryptocurrency has driven to new highs.

Long view of hedge fund managers

Popular hedge fund managers are calling Bitcoin a long term investment increasingly. Renowned managers have lately stated that the price of a cryptocurrency, as considered in US dollars, could rise. At the same time, the Federal Reserve prints cash for helping finance the government pandemic-related emergency stimulus accounts.

Moreover, the central bank has laid out more than three trillion dollars of new cash in 2020. It is more than three-quarters of the whole amount printed out throughout its prior 107-year history.

The effect of PayPal

PayPal is motivating customers for purchasing Bitcoin. The person to person payments gateway announced on 21st October 2020, would allow customers to hold, buy, and sell Bitcoin.

As per the organization, crypto will turn out to become the funding source for investments because of its 26 million merchants globally.

Positive views of analysts

As per analysts, the economic environment post-pandemic could develop a role for Bitcoin within the investor’s asset allocation. When it comes to the role of bitcoin in hedging against inflation, the bitcoin driver is identical to that of gold.

Institutional interest

Some of the institutional investors are considering bitcoin exposure. As per reports from analysts, various money managers oversee billions of money for investors, thereby making funds allocate up to 10% of net assets. Moreover, the unprecedented number of Bitcoin futures contracts is rising, which is considered as another sign that significant investors are utilizing commodities markets for speculating on the crypto’s price.

With that being stated, people are on the lookout for the next high benchmark. They are also concentrating on the things that drove the latest price action of bitcoin, and the prospects from new investments from various institutional assets.

Also Read: Bitcoin Turning Out To Be Less Risky As An Investment

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