2024-12-16
Just two years ago, two ECB employees declared Bitcoin irrelevant. Now BTC has broken through the 100,000 euro mark. These are the reasons.
In the night from 15 to 16 December, Bitcoin not only set a new all-time high of over 106,000 US dollars. The cryptocurrency also reached the 100,000 euro mark for the first time in its history, as data from Coinbase shows.
The reason for this is the continued positive sentiment on the crypto market, which has risen since the interest rate turnaround in the US and Donald Trump's election victory.
One short-term reason can be found in MicroStrategy's potential purchase of Bitcoin: according to an X article by Michael Saylor, the company has once again purchased BTC.
The inflows of Bitcoin Spot ETFs are also creating additional supply pressure. In the ten trading days in December, BlackRock and Co. bought more than 50,000 BTC totalling almost five billion US dollars for their clients.
By comparison, the network has issued around 7,100 BTC since 1 December 2024. The halving - the inflation rate halved in April - is having an effect.
What's more, the FASB rule that came into force yesterday, 15 December, allows companies in the US to hold Bitcoin on their books at the approximate market price.
In addition, private investors around the world are showing increased interest in BTC again, as data from Google Trends shows.
The German Bitcoin scene celebrates the milestone and criticises the euro for its inflationary properties or refers to the fiat currency as "shitcoin".
Here you can read more: https://x.com/scholarium_at/status/1868595701376299114
Also criticised: Jürgen Schaaff and Ulrich Bindseil. After the FTX collapse and the resulting Bitcoin correction, the two ECB employees published a report on 30 November 2022 entitled: "The Bitcoin [price] is on its way to irrelevance."
Since then, Bitcoin has risen by 562 per cent.
Read here what the ECB employees are now demanding: ECB employees want to prevent Bitcoin price rise by law
It remains to be seen whether BTC will now continue to rise northwards. However, at least a temporary price correction could be likely if investors realise profits. After all, around 96 per cent of all Bitcoin investors are currently in profit with their portfolio, as data from Glassnode shows
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