Multiple Factors Driving The Crypto Market Bull Run - EToro CEO.
2021-03-20 | Eddy Morgan
The CEO of EToro, Yoni Assia, predicts multiple factors are at play when it
involves the cryptocurrencies' ongoing market Bullish run – among which, the economic
situation within the U.S. amid
the continued coronavirus outbreak.
“I think
there's a confluence of circumstances that are leading for this all-time high, both in crypto,
also within the stock markets,” Assia revealed in a recent interview. “We’re seeing unprecedented monetary
and financial kind of reactions from federal governments all
around the world
resulting in zero interest rates, and even negative interest rates in some places.
Earlier in March last year, the price of Bitcoin [
BTC] dropped below $4k as COVID-19 prevention measures made global headlines. Since then, however, the cryptocurrency market has roared upward, with Bitcoin reaching milestone prices in
more than $60k and an overall
market capitalization of over $1 trillion.
“We’re seeing an unprecedented amount
of cash being printed by governments all
around the world -
a number of them
within a very unique and new concept of direct stimulus checks to users,” Assia added. “That has definitely raised
the most important discussion in human history about
the worth of cash - a discussion that started very passionately within the crypto ecosystem,” he added, while also mentioning Bitcoin’s scarcity.
Bitcoin
features a maximum supply of 21 Mln coins, though not all
of those are distributed as of yet. Every 10 minutes
approximately,
a group number
of new coins from this allocation are released into the ecosystem as
a gift for miners who contribute to the network. As time goes on, however,
the number of coins earmarked for distribution will only go down;
within the past decade, the block reward has dropped from 50 BTC
to 6.5 BTC. Eventually,
there'll be no more coins entering circulation, despite
a robust, ongoing precedent for increasing investor demand.
The network's inherent scarcity is
a simple enough concept for normal folks
to know, consistent with Assia, who further outlined
that people aren't blind to excessive money-printing and low-interest rates
within the traditional fiat markets. He also
acknowledged that cryptocurrency and stock purchases are now more globally available to retail buyers, spurring mass-scale involvement from
people that might not previously have participated.
He reasoned that these factors have also ignited “a renewed interest that hasn’t been seen prior to December 2017, so since crypto rally 1.0, we haven’t seen
such a lot interest in crypto assets as we are seeing
immediately with crypto rally 2.0 upon us."
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