The rise in the market value of Bitcoin, surpassing major companies like Google, is a significant event that reflects several intertwined factors behind this achievement. Here are the main reasons for this increase:
1. Increasing institutional demand:
The entry of major financial companies like BlackRock and Fidelity into the Bitcoin exchange-traded funds (ETFs) space has increased confidence and opened the door to massive capital.
2. Launch of Bitcoin ETFs in the United States:
The official approval of these funds by the Securities and Exchange Commission (SEC) has reinforced Bitcoin's legitimacy as a traditional investment asset.
3. Digital scarcity (Halving):
The upcoming "halving" event, which reduces the number of new Bitcoins issued, historically leads to a price increase due to reduced supply.
4. Inflationary pressures and weakness of fiat currencies:
The growing use of Bitcoin as a hedge against inflation and loss of confidence in certain national currencies, especially in crisis-affected economies.
5. Broader global adoption:
More countries and companies have started using Bitcoin as a payment method or as cash reserves, enhancing its acceptance.
6. Positive media coverage and bullish expectations:
Positive media coverage and expectations from major financial institutions that Bitcoin could reach much higher numbers have increased investment enthusiasm.