[Wise Crypto Life] 22. 3 Reasons for the Bitcoin Price Rise

 

3 Reasons for the Bitcoin Price Rise

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[Wise Crypto Life] 22. 3 Reasons for the Bitcoin Price Rise

Recently, the price of Bitcoin has been on the rise. As the inflow of funds into the cryptocurrency market increased for the seventh consecutive week, investors who have suffered from the correction are feeling relieved and hopeful for the upcoming quarter. In this edition of Wise Crypto Life, we will look into the recent rise and reasons behind the spike.

1. Inflation Hedge

Inflation refers to an economic phenomenon in which prices rise as the value of money decreases. When this occurs, people try to secure their funds in other assets such as gold, silver, stocks, and real estate in a response called 'Inflation Hedge'.

Cryptocurrency is also one of the inflation hedges. There has been controversy over whether or not cryptocurrencies can be a hedge due to their high volatility, but the recent trends have acknowledged that they could actually be better hedges than gold. As a result, individual and institutional investors alike are investing in large numbers of Bitcoin, driving the price increase.

2. Bitcoin ETF Launch

The US Securities and Exchange Commission (SEC) is sending positive signals for Bitcoin. In May, the SEC took a negative stance on Bitcoin ETFs stating that it still needed more protection devices before launching them. In July, the approval was suspended because it claimed there were insufficient regulations to allow for a safe launch. Furthermore, in September, the SEC announced that there would be a 60-day review period and postponed the decision to approve the Bitcoin ETF requested by Globalx, Wisdom Tree, and Valkyrie.

However, as SEC Chairman Gary Gensler recently announced that he has no intention of sanctioning Bitcoin and is indeed considering a Bitcoin ETF, expectations are rising that it will finally be approved. Bloomberg reported that it could be approved as early as this month.

3. Economic Giants

The global economy is being dominated by the remarks of some big names. In particular, the words of US Treasury Secretary Janet Yellen and the Fed Chairman Jerome Powell have had tremendous influence as US economic policies affect the global economy. On October 2nd, Chairman Jerome Powell said at a Financial Services Commission hearing that he had no intention of banning cryptocurrencies.

The market started to revitalize just as these giants said they had no plans to impose any sanctions on cryptocurrency transactions.

Bitcoin is on a tailwind with various good news, will the rise continue?

Furthermore, will the Bitcoin ETF be released soon?