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Updated April 14th, 2021 at 17:31 IST

Why is Bitcoin going up? Find out the reason behind Bitcoin's sky-high price

Bitcoin recently hit a record new price of $64,000 on April 13. Why is Bitcoin going up so much? Read on to find out the reason behind Bitcoin's price rise.

Reported by: Sakshat Kolhatkar
why is bitcoin going up
Source: Unsplash  | Image:self
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Bitcoin is the world's most popular and also the most expensive cryptocurrency. On April 13, the price of Bitcoin hit a record high of $ 64,000. A day before, Bitcoin had broken its previous record of an all-time high. So, why is Bitcoin going up so much in price and so quickly? Read on to find out in detail why is Bitcoin going up. 

Why is Bitcoin Going Up?

Bitcoin is the cryptocurrency that took the world in a storm in 2017 when its prices rose in the ten- thousand dollar digits. Since then, the price of Bitcoin has only gone up consistently, although not without some hiccups. Yesterday on April 14, the price of this cryptocurrency hit a record 64,000 dollars, which at this point is not a surprise for anyone. As interest in cryptocurrency grows, and more people start to buy Bitcoin, the prices are going to keep increasing. However, there is a specific reason the price of Bitcoin shot up 5 per cent in a single day. 

Coinbase, one of the most popular exchanges for cryptocurrencies was listed on the Nasdaq Global Inc's exchange. Coinbase got an evaluation of a whopping $100 billion. The crypto market turned bullish as Coinbase's listed inspired confidence among the crypto investors and enthusiasts. Over time, many large corporations, celebrity investors and governments have come to realise the importance of blockchain technology. Firms like Tesla have started accepting Bitcoin as a legitimate mode of payment. As the popularity of Bitcoin skyrockets, so do the prices. 

Bitcoin Bubble and Bitcoin Price Prediction

As cryptocurrencies are endorsed and used by corporations and government departments in their daily functions, Bitcoin is slowly becoming an inescapable part of the future. However, many economists and analysts believe that the cryptocurrency market may be in a bubble that's about to pop. Looking at the Bitcoin price, it's easy to say that there is a Bitcoin Bubble.

However, unlike traditional Fiat currencies which are inflationary in nature, meaning they get devalued over time as supply is unlimited, Bitcoin is deflationary. What this essentially means is, there is a limit to the number of Bitcoins. Unlike national governments who can print an unlimited amount of money, there are only a total of 21 million Bitcoins. Once all 21 million Bitcoins are mined, there will not be any more available. As long as the demand for Bitcoin continues to grow, the price of this limited cryptocurrency will continue to grow. Some experts believe that Bitcoin is very likely to hit a price of at least $ 100,000 by the end of 2021. 

Source: Unsplash 

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Published April 14th, 2021 at 17:31 IST

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