Coinbetter: Global acceptance of Bitcoin is on the rise
Finally, Bitcoin seems to have ushered in its own spring.
The largest cryptocurrency by market cap topped $48,000 in one fell swoop, gaining more than 4 percent in two hours to hit a three-month high. Since last Sunday, BTC has risen more than 12% after climbing for six straight days.
According to Coinbetter market data, the current price of Bitcoin (BTC) is 47270.6283 USDT, with an increase of 3.14% in 24H. (time of writing)
After Bitcoin’s rapid stretch and entry into an ascending channel, Singapore-based QCP Capital had speculated that a broader rebound in global asset prices was the reason why this “bullish momentum” may continue in the short term. The fund also pointed to Luna’s continued buying of BTC as a reason for the continued momentum.
It is true that geopolitics and the issue of energy payments under the Russian-Ukrainian war have also had an important impact on the price of Bitcoin.
State Duma Energy Committee Chairman Zavalny said at a March 24 news conference that he and representatives from China and Turkey have been discussing changing the preferred settlement currency for their biggest exports, according to Russian news outlet RBC. Russian energy chief Pavel Zavalny has raised the possibility of accepting bitcoin as a “friendly country” such as China and Turkey to buy oil and gas. These countries could start paying for energy using Russian rubles, Chinese yuan, Turkish lira, and even bitcoin (BTC) instead of the international standard U.S. dollar, Zavalny said.
This means that demand for Bitcoin as a new foreign exchange reserve will increase, and that new demand usually leads to an increase in the price of Bitcoin.
Of course, under the influence of the broader market stretch, Ethereum and other mainstream cryptocurrencies also began to rise. The overall upward logic of ETH is similar to that of Bitcoin, with the spot trading price exceeding $3,250, the highest level since early February.
Bitcoin is gradually being inclusively accepted.
In fact, the audience of Bitcoin has changed from geeks to ordinary people, to institutions, and it is also attracting sovereign countries to configure.
From the data of CMC, the number of people who own Bitcoin is far more than 40 million, and the number of addresses with Bitcoin holdings higher than 10 BTC is far more than 140,000, a new high for the year.
As the legitimacy is gradually recognized by governments around the world, institutional investors have increased demand for bitcoin investment, more than a dozen US-listed companies have purchased bitcoin, and more companies and financial institutions are entering cryptocurrency market.
On March 14th, Musk said on social networking sites when discussing inflation trends in the next few years, “I still own and will not sell Bitcoin, Ethereum or Dogecoin.”
On March 4th, Bill Gross, a billionaire known as the “King of Bonds”, said in an interview with CNBC that in addition to trading meme stocks to earn profits, he is also a “small investor” in Bitcoin.
On March 2nd, Barry Silbert, founder of Grayscale’s parent company DCG, posted on his personal social media platform, “Bitcoin looks great right now, and we’re buying.”
Not only that, more and more institutions have begun to throw olive branches. MicroStrategy, the world’s largest bitcoin holding company, announced on Tuesday that one of its subsidiaries used bitcoin as collateral for a $205 million loan to buy more bitcoin. This is the company’s first direct loan to buy bitcoin, having previously issued debt financing to buy bitcoin. As of the end of January 2022, MicroStrategy held 125,051 bitcoins worth about $5.9 billion.
While institutions continue to enter the market, Coinbetter found that the pricing power of Bitcoin has also shifted from exchanges to Wall Street in the United States.
With the entry of large institutions, the acceptance of Bitcoin has increased by an order of magnitude. According to recent news, on March 27th, the Brazilian city of Rio de Janeiro will officially start accepting Bitcoin (BTC) for payment of urban real estate related taxes (IPTU) within its city limits. As reported by Cointelegraph Brazil, the Minister of Economic Development, Innovation and Simplification announced that a new tax law incorporating cryptocurrencies will be implemented from 2023.
El Salvador’s ambassador to the United States, Milena Mayorga, said Wednesday that the country is seeking support from cryptocurrency exchange Binance to perfect bitcoin as legal tender and issue bitcoin bonds.
On March 21st, according to Blockchainwelt, Honduras also officially announced Bitcoin as the official payment method half a year after El Salvador announced Bitcoin as the national legal tender.
…the list goes on and on.
Judging from the current global use of bitcoin, cryptocurrencies led by bitcoin are becoming more and more attractive to investors, especially as bitcoin is becoming mainstream as a portfolio asset.
The reason is that in the past month, Bitcoin’s hedging ability against catastrophic events has surpassed other cryptocurrencies, and its share in the entire cryptocurrency market has risen to 43%.
Price is often the most intuitive reflection. So Coinbetter sees this as Bitcoin winning over a wider investor base as a hedge against risks like a weaker dollar or faster inflation.
Although Bitcoin has shown extraordinary anti-risk ability, Coinbetter believes that to achieve better development of Bitcoin, a stable environment is still needed, and world peace has a crucial impact on financial markets. Especially after the fifth round of negotiations between Russia and Ukraine, the world crude oil price has dropped significantly, and the crypto market has also recovered due to this influence.
We must admit that only when the environment is stable around the world can the crypto market have more stable development conditions and the currency price will rise steadily.
Of course, Coinbetter still maintains a development and sustainable vision to look at Bitcoin’s anti-risk ability. The emergence of Bitcoin has provided global investors with a new type of global safe-haven asset, and the excellent performance of the short-term market has proved its long-term strong vitality and growing global consensus. Bitcoin acceptance is improving and becoming more mature. This will qualitatively improve Bitcoin’s hedging ability against catastrophic events.
Finally, Coinbetter also kindly reminds the majority of users: there are risks in the market, the uncertainty of the external environment continues to increase, and investment needs to be rational evaluated.
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