Bitcoin Latest News 2021: Why Is BTC Price Rising Today?

In recent years, Bitcoin has shown that an active rise in the exchange rate will inevitably follow even after significant falls. The coin managed to get through the global economic crisis and prove its value, although it was constantly called a bubble, which was predicted to burst every six months. So, why is BTC price rising?

In total, there are 5 reasons for the increasing value of Bitcoin:

  • mining difficulty increase;
  • influence of large institutional investors;
  • Bitcoin whales influence;
  • use as a means of payment;
  • obtaining legal status in many countries.

Let’s consider all these reasons in detail!

#1 Mining Difficulty

Mining difficulty shows how much computing power you need to use to get 1 unit of cryptocurrency. The more miners are involved in finding a block, the higher the competition and difficulty.

In August, the rate rose by 7.3% as a result of regular automatic adjustments. The fact is that more and more miners from China are returning to the mining process after the May ban on crypto mining. Large miners transported and built their farms in other countries, while small ones simply sold their equipment. 

Total BTC Hash Rate Chart

The bottom fall was passed at the beginning of July. Since then, the difficulty has steadily increased, and miners have been amazed by the price of BTC rising significantly.

An additional factor is the BTC halving that took place in May 2020. The miners’ reward was halved, therefore, in order to mine the same number of coins, the hashrate power had to be doubled. Experts believe that not all halving results are visible at once. Its consequence in the form of another wave of BTC price growth was predicted just for the summer-fall of 2021.

#2 Institutional Investors

Large companies and institutional investors started investing in cryptocurrency during the epidemiological crisis. This fact indicated that BTC has become a reliable savings asset along with traditional gold, platinum, and silver. Investors were able to maintain the value of their portfolios against the background of weakening major currencies due to the forced additional emission — the states started to print money to help the population. Long-term investors were able to earn up to 500%.

List of some large companies that purchased BTC in 2020-2021:

  • Guggenheim Partners, Trudor Invest,
  • Fidelity,
  • Morgan Stanley,
  • PayPal,
  • Tesla,
  • Goldfort,
  • Square.

The scope of purchases is from $1.5 billion spent by Tesla to Square’s modest $50 million. When such amounts are invested in any market niche regularly, it inevitably begins to grow and increase its popularity and importance. That’s why small investors were amazed by the price of BTC rising substantially.

#3 Bitcoin Whales

The owners of the largest amounts of BTC are called whales. In total, more than 100,000 bitcoins are stored on two wallets of the network, which is 1.5% of their total amount. In 88 wallets, there are capitals from 10,000 BTC, which in total is another 13%. 

About 2,200 wallets contain from 1,000 to 10,000 BTC, which in total gives another 42% of the current emission. This amount of capital enables a small number of hodlers to influence the market price directly.

In the fall of 2020, the whales stimulated BTC rally — they sold bitcoins to small investors and bought them from scared traders in moments of price decreases. In addition to constantly making money on small traders, whales prevent the Bitcoin exchange rate from falling. On the contrary, they arrange and promote all price rallies to sell their coins at an inflated rate.

In February 2021, 44% of the emission holders increased BTC price to $58,000, buying up BTC daily for 12 days.

BTC Price Chart in February 2021

We should also mention Elon Musk, whose tweets and statements have repeatedly led to a pump that resulted in BTC price grow up. 

The businessman was repeatedly accused of market manipulation, for which any legal entity would have long been punished by American justice.

#4 Using Bitcoin as a Means of Payment

Five years ago, it was difficult to pay for purchases from everyday life with bitcoins. It has been used as a way of investment and anonymous purchases of digital goods or online services.

In 2021, people can use cryptocurrency to buy household appliances, clothing, music records, online games, cars, and real estate. Travelers pay for plane tickets, trains, hotel rooms, grocery deliveries, excursions, etc.

The more BTC integrates into everyday life and the economy outside the blockchain world, the more trust it gains. All these factors have a positive effect on the rate and indicate that BTC price will rise.

#5 Legal Status

More and more countries recognize Bitcoin as legitimate. Thus, BTC is considered legal tender in Japan, it has the status of currency of account in Germany, and in Switzerland, it is governed by the same rules as foreign currencies.

An important historical event is the recognition of Bitcoin as an official means of payment in El Salvador. It became the country’s second national currency. Now, in addition to US dollars, you can pay with cryptocurrency for any purchases on the state’s territory. This fact is expected to increase the speed of money transfers from labor migrants to their home countries.

New legislation is being drafted and adopted in many countries. Belarus was the first to legalize smart contracts, cancel any taxes on cryptocurrency operations. The more countries move from stigmatizing blockchain technologies to their integration, the higher the BTC price grows up.

Conclusion

To sum up, it is necessary to say that according to many crypto experts, the BTC price will rise to a new all-time high of $65,000. The most important thing is to break through the $54,000 mark and gain a foothold at the $50,000 level, after which the rally will continue.

Most likely, the coin will not have time to increase to $100K this year due to the consequences of the Chinese ban for all cryptocurrencies and miners. Nevertheless, in 2022 it should beat this high.

If you’re interested in buying BTC, you should definitely think about doing this at Switchere. On our platform, you have an opportunity to buy BTC in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order. 

Why is BTC price rising today? What do you guys think? Feel free to share your thoughts and predictions in the comments. Have a great weekend!

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