In the present cryptocurrency market if you combine all the prices of currencies it will not even touch the single price of bitcoin. In the previous life history of bitcoin if we check out the past statistics of bitcoin it was always higher than other cryptocurrencies.
But in the case of the recent sudden sky-high price of bitcoin, there are few reasons behind this. I think two main factors have been triggered the sudden rising of bitcoin prices. The first factor can be U.S. dollar inflation. The statistics say every year the average dollar inflation is being increased at the rate of 2% every year. For this reason, the purchasing power of the dollar has been decreasing. Covid 19 has also fueled this inflation. Recently the U.S. government has added almost $2.4 trillion to their economy. This sudden addition of dollars has made the investors worried about rising inflation and a decrease in purchasing power.
That's why many investors have retreated investing from in the dollar and took shelter in assets that are more appreciated. More likely bitcoin became the safe-haven assets for the investors. So, more investors were investing their money in bitcoin than the previous years. This reason pushed the price of bitcoin higher than usual.
Another reason can be the sudden decision of PayPal. PayPal has decided to include cryptocurrencies in its payment method. This means the PayPal users will be able to buy, sell or hold bitcoin along with the cryptocurrencies. At present, there are about 350 million active users of PayPal, and its active merchant number is nearly 20 million. So, this good news to the PayPal users has attracted them to buy bitcoin immediately. As the PayPal giving the trading facilities in bitcoin. These reasons mainly blackened and pushed the bitcoin at its peak point.
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