Bitcoin broke $10,000 this week, in what seems like a skyrocketed advance from its $1,000 milestone at the beginning of the year. So what caused Bitcoin to jump that much? How did Bitcoin reach $10,000?
One of the reasons, experts say, is due to institutional money. Investments from anywhere from hedge funds to pension funds to corporate businesses have been pouring into the cryptocurrency market and the fact that Bitcoin is now being supported by so much institutional money is a big reason for its advancement. Accounting firms and banks from around the world are supporting Bitcoin now when they weren’t before and this marks a major shift.
Bitcoin is being adopted into the mainstream. Both those who have done research on the market, as well as investors unfamiliar with cryptocurrency, are putting money into Bitcoin right now. There are new streams of people getting involved with Bitcoin every day, and the more people supporting it, the more news about Bitcoin is generated, the more Bitcoin grows. Even at these levels though, only an estimated half-percent of the global population uses digital currency, meaning that there is still more room for Bitcoin to grow if it can keep its market going.
Sol Lederer, Blockchain Director at LOOMIA has said of the growing cryptocurrency, “Bitcoin’s future is still uncertain; it faces the same serious technical challenges it has for years and faces stiff competition from newer, more sophisticated Blockchains. But even if it were to crash, it’s apparent that Bitcoin is here to stay. Whether it trades at $10,000, $5,000, or $500, it’s not going away.”
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