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Analyst: The Bitcoin Price Is Spiking Because It’s Rarer

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Bitcoin has been experiencing some extremely bullish patterns as of late. The currency has managed to spike by roughly $2,000 in just a matter of weeks, jumping from the low $9,000 range beyond $11,100 at the time of writing.

The Bitcoin Price Surge Could Easily Continue

The currency recently rose by more than 12 percent in a single 24-hour period, marking the highest it’s been in more than six months. This represents a nice change for the world’s number one cryptocurrency by market cap, which has experienced a rather shaky 2020 thanks to the growing coronavirus pandemic and several economic repercussions.

In mid-March, the asset fell to the high $3,000 range after spending most of the previous month trading for well over $10,000. However, the asset managed to regain all it had lost and really turn itself around come early May. It briefly rose back above the $10K mark, but ultimately fell back into the $9,000 range, which it remained for more than two full months.

Now, with its latest jump forward, the asset is beginning to intrigue the minds of analysts and industry experts everywhere, who are confident that the currency is likely to experience further bullishness throughout the remainder of the year. One such figure to put this idea out there is Alyse Killeen.

As an advisor to Mantis VC, Killeen believes that one of the big contributing factors to bitcoin’s sudden price spike is that BTC is now being used differently than it was just five or even ten years ago. In a recent interview, Killeen states:

Bitcoin has much more intrinsic value today than it did a year ago just from an infrastructure perspective. [The] Lightning Network is working, and sidechains are working. So, you can do a lot more with bitcoin today than you could just last year.

The Lightning Network is more accessible and scalable today than it was just a few years ago. The platform is helping bitcoin in that it is allowing smaller transactions to take place off-chain so that bitcoin will not be bogged down by excessive fees and congestion, which can be common issues for overstuffed blockchains.

In addition, Killeen comments that bitcoin has experienced an increase in interest from investors while also experiencing a shortened supply. Following the third halving, BTC is less accessible and has established itself as a rarer asset, which is no doubt contributing to its sudden price surge.

Banks and Crypto Working Together!

And now that banks can offer crypto custody services to users, things are about to go very well for the world’s number one cryptocurrency. Casa chief executive officer Nick Neuman explains:

This is bullish for bitcoin and self-custody. With ‘real banks’ holding bitcoin for their customers, the average person will view bitcoin more like money, and [the] differentiation of being your own bank becomes even more clear.

Tags: banks, bitcoin, bitcoin price



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