This week has been one to remember in the crypto world as Bitcoin has surged to near all time highs @ $19.200 and we have even seen Ripple climb above the $0.50 cent mark for the first time since late 2018. So what is causing all this momentum?
The crypto asset class as a whole witnessed an awakening after the pandemic announcement on March 12th 2020 the main reason behind it is macro-based. The initial market reaction was a severe crash, that caused the Federal Reserve to begin unprecedented printing of new USD to the tune of Trillions. As a result, investors whom were dismissive of Bitcoin were forced to take a second look to protect themselves against incoming inflation. A fixed supply schedule with no human discretionary decisions became very valuable in the eyes of many.
This created a wave of institutional capital flowing into the crypto market, more specifically Bitcoin. That was later followed by a massive surge in Bitcoin’s price bringing it $1,000 away from it’s all-time high. This resurgence in Bitcoin interest then propagated into the rest of the market from other retail investors, as they woke up to the fact that the next bull-run may have begun.