The Bitcoin price rose above $18,000 on Wednesday, conquering heights reached all the way back to January 2018. The increase in the price rate is due to the continuing growth of investor interest.
The Bitcoin price has experienced steady growth over the past months. At the beginning of September, it was in the range of $10,000, and on October 21, it exceeded $12,800. The price of Bitcoin has been holding above $10,000 for 112 days, which has become the longest period for this in history. The next “psychological mark” is now the historical maximum of 2017 – $20,000.
There are many reasons why the Bitcoin rate continues to strive for new highs. The most important factor was the willingness of large companies to invest in crypto assets. These include MicroStrategy, Stone Ridge, and Square, a payment company owned by Twitter founder Jack Dorsey. In addition, the American billionaire Stanley Druckenmiller recently announced that investing in Bitcoin will be much more profitable than investing in gold. Tudor BVI hedge fund manager Pol Tudor Jones also believes Bitcoin is a defensive asset in the face of rising inflation.
Another key factor that influenced the steady growth of this cryptocurrency is the May halving of the miner reward to 6.25 BTC. Earlier, Binance.US CEO Catherine Coley said that historically the price of Bitcoin has been increasing gradually, several months after halving occurs. According to Cowley, the increase in the BTC rate can be influenced by the complexity of its production and the increased interest of people – they realize that they do not have enough Bitcoins and buy more of them.
