Bitcoin Crosses $55k; Is Recovery on the Horizon?

After a week of reverses, Bitcoin has been able to stage some recovery recently, thanks to space for the increased risk appetite that the market has shown in the past couple of days. It is still very early to say how much this recovery will hold in the future, although on the surface, there are good chances that Bitcoin bulls will remain in action in the near future.

There is a slew of reasons behind the increase in value of Bitcoin as the largest cryptocurrency by market capitalization made a spectacular comeback in 2021. Along with others, the institutional support for Bitcoin is one of the primary contributors to its growth in recent times. Many big corporate houses have come forward, and their faith in Bitcoin is fueling the price of the digital currency. Among the prominent names which have voiced their support in favor of Bitcoin includes Tesla, Microsoft, JP Morgan, and BMW. This institutional support has proved very effective in killing investors’ fears about the volatility in the future growth of Bitcoin.

Another important contributing factor to the growth of Bitcoin is the policies adopted by governments and central banks worldwide in the wake of Covid-19. Due to the ongoing pandemic, every nation is very keen to support its economy, and for doing so, these countries are printing their fiat currencies without any inhibition. While it may prove beneficial in the short run by lending supporting to economies, the long-term impact of this development will stoke inflation. Many investors are now investing in Bitcoin to hedge against this fear of inflation in the future, know more about bitcoin forecast. This phenomenon is similar to what we have witnessed in the case of gold purchases.

Another shot in the arm of Bitcoins price has come from the Nexon Co., which has recently purchased Bitcoin worth $100 million. The Tokyo-based online gaming company has joined the likes of Tesla and JP Morgan with the purchase of around 1717 Bitcoins at a $58226 average price. It’s worth mentioning that this purchase by the Nexon is the biggest buying exercise of Bitcoin executed by a company traded on the Tokyo Stock Exchange.

Undoubtedly, the institutional support and growing fears of inflation have primarily contributed to the growth of Bitcoin in recent times. Although recently, we witnessed a downturn in the valuation of Bitcoin, the cryptocurrency is now showing signs of revival. It can be considered to be on the path of recovery. It will be interesting to witness the future value and price trends in Bitcoin as any positive or negative momentum bearing on the entire cryptocurrency sphere.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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