On Saturday, the global flagship cryptocurrency soared up to the $61,700 area, targeting $62,000 and setting a new all-time high.
By today, however, BTC has pulled back and is trading at the $57,600 level. Below is what has been pushing the world’s largest crypto to the North since October 2020. Overall, since early 2020, Bitcoin has surged by approximately 1,000 percent.
U.S. stimulus measures are the key to BTC growth, $1.9 trillion has been approved
One of the major causes having a cumulative effect on the Bitcoin price in 2020 (aside from the growing interest coming from financial institutions and bullish reports from JP Morgan analysts) was money printing organized by the Fed and former U.S. president Donald Trump.
The ECB and the central banks of a few other major countries followed suit in implementing their quantitative easing programs on the population.
Last week, the U.S. Senate approved of another stimulus program for a mind-blowing 1.9 trillion USD. Stimulus checks, along with rising interest from major financial institutions, have again helped Bitcoin take a step upward and come close to the $62,000 level.
Many in the crypto community have assumed that, just as last year, many of the promised stimulus checks will be used by their owners to buy (more) Bitcoin.
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Low exchange BTC balances
Besides, Bitcoin balances on exchanges have been low recently as financial institutions have been actively purchasing BTC—including the dip when it dropped below the $50,000 level recently.
The son of famous Bitcoin hater Peter Schiff, Spencer, has converted his entire portfolio into Bitcoin, even selling his silver stocks to do so. MicroStrategy has also made a few BTC purchases recently, with the latest buy made on Friday of last week when it grabbed another $15 million worth of BTC.
Traders are taking profits
However, during the Asian session, Bitcoin saw a pullback toward the $57,000 level, where it is sitting at the moment as traders have been fixing their profits and withdrawing them.
The community remains optimistic, expecting Bitcoin to continue rising soon again.