It seems Bitcoin BTC, and the rest of the crypto market is finally back after tumultuous months that saw almost all the coins lose over 80% of their value. No currency says that the crypto market is rallying than Bitcoin which just this week came close to crossing the $14,000 mark before falling back to just below $12,000 where it currently trades.
However, it’s important to note that the coin has almost quadrupled in value since the beginning of the year. Many crypto optimists see the currency revisiting its 2017 highs sooner than later.
Reasons Driving Bitcoin BTC Price Up
The first reason that has been driving the price of Bitcoin BTC up has something to do with the U.S. trade war with China. China will not liberalize, and capital controls could persist. In such a world, Bitcoin will continue to be a useful way of getting funds out of the Asian country. There is a chance that the Chinese government could or could not crack down on the practice, but outright liberalization has the potential to end the use of Bitcoin altogether.
But, a China that chooses not to liberate can influence the broader tenor of the global economy away from freedom which in turn gives Bitcoin more uses around the world for those that seek to evade central authorities.
The second factor playing in favor of Bitcoin is the fact that the Democratic Party in the United States is continually shifting to the left by pushing for a wealth tax as there is a need to restore fiscal sanity. Presidential candidate Elizabeth Warren is pushing for a 2% wealth tax for people with over $50 million in assets.
This move has the potential to boost the demand for Bitcoin and other cryptocurrency assets as these virtual assets represent a way to store assets away from the reach of many tax authorities. Add the fact that the U.S. is not the only place that could be looking to a wealth tax soon to balance the books. If anything, the high price of BTC tells us that the wealthy are not that willing to give up their assets easily without a fight.
Finally add the fact that leading tech companies like Facebook are in the frontline as they try to introduce a global currency, a cryptocurrency that will reduce transactional costs significantly. A big boost for the entire crypto space, meaning that its finally going mainstream.
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