The broader public is finally starting to understand what bitcoin actually is, why it was created and what it is trying to accomplish. The public is realizing slowly the bloated state of our financial system. The debt, money printing, unfunded liabilities, among many other facts can not be ignored anymore. This is ultimately what’s driving bitcoin and the broader crypto market higher.
When so many people try to hedge themselves against inflation and fiat money issues, combined with an institutional investor boom, plus the halving that cut bitcoin supply by 50% last spring, you will find an increase in demand and therefore bitcoin value.
Some new crypto buyers might just be short term traders but more and more will invest and use crypto in the long run, especially the new flood in institutional investors. This bull run still has significant upside. The fundamentals that are driving the adoption aren’t going away soon.
This environment of rising inflation/prices combined with ultra-low interest rates and the resulting lack of yields will continue to create demand for alternative assets like bitcoin for the next decade. When inflation gets truly serious, bitcoin will likely go parabolic once again.
Sven Franssen