Leading cryptocurrency Bitcoin has recently experienced a massive buying wave, pushing BTC to an all-time high.
At this point, although BTC reached $ 69,000, it could not hold on there and fell to $ 59,000 in a short time.
However, Bitcoin recovered afterwards, increasing by 59% since the beginning of the year and a surprising 300% increase since January 2023.
While the market generally continues to expect a rise in Bitcoin, CME Group discussed the rise of BTC in recent months and listed the reasons behind the rise in a video it published.
While CME Group cited the halving event in April as the first reason for the rise in Bitcoin, he said that other reasons were global economic concerns and the accelerating national debt and excessive government spending in the USA.
1-There Will Be a Supply Shortage with the Halving
In the video published by CME Group, the halving, which is expected to take place in April, was first mentioned.
Pointing out that with the halving, the BTC reward miners receive will be halved and the BTC supply will systematically halve, CME Group said that as long as the demand for Bitcoin continues to increase, the price will be pressured upwards.
At this point, CME group analysts said that they expect the demand for Bitcoin to continue to increase thanks to ETFs, and therefore the price of BTC to continue to increase.
2- Global Financial Concerns
CME analysts stated that among the reasons for the recent rise in Bitcoin are economic concerns about the banking and real estate sector globally.
Analysts also stated that this rise was due to the belief that the dollar would begin to weaken rather than economic concerns, and this increased the need for Bitcoin.
At this point, analysts referring to the US Banking crisis last March reminded that Bitcoin also rose rapidly after the rapid intervention in this crisis.
3-Increase in Debt and Government Spending in the USA
Analysts recently said that rising debt across the country and excessive government spending are the last major factors affecting Bitcoin’s valuation.
Stating that the sentiment in the market is increasingly turning towards Bitcoin due to concerns about the rapid increase in the country’s national debt, CME analysts argued that the mutual reinforcement of Bitcoin and gold, together with the significant gains made by gold since the end of 2022, will bring more rise for Bitcoin.
CME Group, the world’s largest derivatives market, launched Bitcoin futures contracts in 2017. This move by CME Group was a necessary and important milestone in the mainstream adoption of Bitcoin and other cryptocurrencies.
*This is not investment advice.
