Price swings are going to continue to happen, and experts say. As the Bitcoin network grew, so did its mining difficulty, which required increasing amounts of energy. And Cathie Wood's Ark Investment Management has put their names on future-backed Bitcoin ETF applications, a structure that Securities and Exchange Commission Chairman Gary Gensler has hinted he would be open to. According to him, bitcoin and blockchain technology are one of the best things that have happened to companies.
Recently, PayPal (PYPL) announced that it would soon allow its users and merchants to buy, sell, hold and accept Bitcoin and other cryptocurrencies as a form of payment. This is a special issue, because if bitcoin reaches this price level, its market capitalization will be equal to the market valuation of gold. He has also become a Bitcoin aficionado in recent months, and he never hesitates to voice his opinions on the cryptocurrency craze accordingly. This would be a big step forward for bitcoin and cryptocurrency investors, who have been calling for approval of a bitcoin ETF for years.
Given the ease of access to the cryptocurrency markets relative to previous years, it is not clear that the launch of a Bitcoin ETF will cause an avalanche of demand, according to Juthica Chou, head of OTC trading at Kraken Digital Asset Exchange. PayPal has nearly 350 million users who will now have the ability to easily buy, store, and use Bitcoin. The only ones he has admitted to owning personally are bitcoin, Ethereum (ether) and, you guessed it, dogecoin. That transaction alone perfectly shows the dramatic change in value that Bitcoin has experienced over the years.
Bitcoin halving events, in which the total supply of Bitcoin available on the market decreases due to a reduction in miners' rewards due to an algorithmic change, have also catalyzed price increases. But what is driving this growth? It turns out that there are a wide variety of factors that continue to cause Bitcoin to rise in value. Will Morris, sales trader for UK-based digital asset broker GlobalBlock, believes this could be the start of an “extremely bullish phase for bitcoin. Because Bitcoin has the highest market capitalization of all the numerous crypto assets, it is no exaggeration to say that it is the most prominent crypto asset.
Recently, a trend began in which publicly traded companies were beginning to convert cash from their Treasury bonds into Bitcoin as a stronger store of value.