3 Factors Affecting Bitcoin Price Towards $100,000
There are many factors that influence the increase in the price of Bitcoin (BTC) every year.
For this year, the price of Bitcoin and other crypto assets has had more influence from the SEC and China's purported decision to boycott crypto.
With these challenges, will Bitcoin make it to its goal of $100,000 by the end of the year? The answer is, there is still a possibility.
Remember that exactly one year ago, Bitcoin was only trading at $10,500.
However, the price continued to roll in massively and by the end of 2020 Bitcoin could close the year with $29,000. From a percentage point of view, the price experienced a 175% jump.
While currently, the price of Bitcoin stands in the $50,000 range. If it wants to hit $100,000 by the end of December, that means its value only needs to be up around 100%, lower than last year.
Bitcoin ETF approval in the United States
The topic of the United States Securities Commission (SEC) plan to approve Bitcoin ETFs has always been a hot topic in the cryptocurrency space in the past year.
There are dozens of analysts who judge that Bitcoin's performance is sufficient if it is approved and funded for trading on the Bitcoin exchange.
The SEC has received countless applications since 2016. However, their side rejected almost all applications until last year, but in 2021 it is again seriously talking about it.
The news instantly legitimized the mainstream cryptocurrency among many investors and traditional financial institutions.
Because they will later have exposure to the asset via a well regulated Bitcoin ETF. Therefore, the SEC must immediately approve the Bitcoin ETF.
Thus, the implications of this move can indeed be a factor in the rising price of Bitcoin.
Mass Adopt
PlanB reveals that Bitcoin has touched its first legalization in El Salvador.
And because of that country, they managed to make history last September as the first country to legalize Bitcoin as a legal tender.
So far, the use of BTC has been growing rapidly. At least according to the president of El Salvador, Nayib Bukele, his country has succeeded in optimizing the use of the digital currency.
Thus, the creators of S2F underlined that if other countries followed El Salvador, it could increase the price of cryptocurrencies including Bitcoin.
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Even if it wasn't a country, a prominent name could do the same.
We have seen how the price of BTC can fluctuate and increase rapidly when figures like Elon Musk talk about it.
So, if the crypto community gets a new Michael Saylor, Bitcoin could indeed go higher quickly.
Adoption can also come from giant companies like Apple, Amazon, Google, or Microsoft.
China VS Cryptocurrency
This seems like the most unimaginable scenario of the year, but it is what it is. China looks like it will continue to defy the cryptocurrency space forever and this year is even more sinister.
China has taken this dispute to a higher level, by harassing digital asset miners, trading, and everything to do with cryptocurrencies.
Miners eventually had to find a new home, which had a temporary adverse effect on the BTC network.
Many centralized cryptocurrency exchanges have also had to stop their services to Chinese users.
The Chinese government does it all not without reason. Investigate a calibaration, they are reportedly developing their own central bank digital currency.
It will work completely differently than bitcoin, meaning it will allow the Chinese government to maintain control over all transactions.
As a result, the chances of a China U-turn do not seem to be visible at all.
However, calm down! The United States, as another trend center country, has made it clear that they will not follow the same path, which has a positive impact on the market.
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