According to a recent analysis of Binance Research, the price of bitcoin has risen to $ 18,000 due to macroeconomic uncertainty.
Today, in fact, the price of BTC has returned above the $ 18,000 share, after yesterday's brief decline, which is a level that has been reached only a few days in the entire history of Bitcoin.
Binance Research reveals that the cryptocurrency market has grown in the last 3 years, after the burst of the speculative bubble at the end of 2017, to the point that many people and institutions are taking a 'second look' at Bitcoin, as well as in the crypto ecosystem, due substantially to the increased macroeconomic uncertainty of this period.
In particular, by now Bitcoin would be "widely perceived" as a possible hedge against inflation risks.
Why Bitcoin could rise again: Binance's explanation
For these reasons, after a 56% increase in value since mid-October, BTC is expected to continue growing, so much so that it could even exceed $ 20,000 and reach a new all-time high.
This is due to several factors, but the most important seems to be its role as a possible hedge against inflation.
In fact, it is assumed that central banks will continue to create and distribute large amounts of fiat money, with the unavoidable risk of reducing purchasing power and devaluing the currency.
As a result, a kind of "flight to safe haven assets" has been unleashed, with gold appreciating 23% since the beginning of the year.
Bitcoin follows a similar path, albeit with an increase of 248% since the beginning of the year.
This has also convinced large investors to buy Bitcoin, increasing demand.
But nevertheless, even on the supply side, some things have improved in the last three years.
First, the "growing regulatory certainty" that has allowed the creation of authorized custody services. For example, Grayscale Bitcoin Trust it now has over 500,000 BTC and is growing rapidly.
In addition, the process of entering this market has been greatly simplified.
The existence of derivative products, such as futures, likely helps price movement by giving the cryptocurrency market more depth, so much so that Bitcoin's open interest has recently reached an all-time high of more than $ 6 billion.
In other words, the ecosystem has matured so much so that it is easier to operate in this market. Macroeconomic uncertainty and inflation risks have done the rest.