What Drives Bitcoin Growth?

What Drives Bitcoin Growth?

Bullish rally in BTC/USD is gaining momentum. Over the past three days, the BTC rate has increased by 7%, recovering from $11,400 to almost $12,500. Earlier, this resistance level was the nearest target that buyers had been trying to reach since August 2019.

Increased demand for Bitcoin is observed against the backdrop of a worsening global coronavirus situation. According to Johns Hopkins University, the number of reported coronavirus cases worldwide has already exceeded 40 million, and the number of deaths has reached 1.1 million. Many countries have tightened their quarantine measures in an attempt to curb further spread of infection. WHO keeps posting a record daily number of coronavirus infections since spring, while no country has yet completed their clinical trials…

The negative impact of the pandemic on the global economy is forcing regulators and governments to consider additional monetary stimulus measures, which in the long run should have a positive effect on those assets that are generally considered the best protection against inflation risks. Bitcoin and gold take a special place among them. In other words, the more money is printed, the higher the BTC chances to update new highs.

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