#BTCBackto100K
Factors that drove Bitcoin to reach $100,000
1. Adoption:
The entry of large companies and institutional investors, pension funds, and others increases liquidity and demand, and they invest huge amounts, affecting the market.
2. Supply Reduction (Halving):
Every 4 years, the mining reward is halved, reducing the number of new bitcoins entering the market, and the limited supply increases Bitcoin's rise.
3. Increased Global Acceptance: The expansion of Bitcoin's use as a means of payment as an official currency, as seen in El Salvador, enhances its legitimacy, increases demand, and reduces dependence on traditional currencies, especially in countries suffering from high inflation or weak financial systems.
4. Inflation Fears:
The printing of new money by central banks diminishes the value of money, prompting investors to turn to Bitcoin for value preservation, which drives its price up.
5. Positive Regulations:
Approval of Bitcoin Investment Funds (Bitcoin ETFs) makes it easier for investors to access it and opens doors to massive investments.
6. Improved Technical Infrastructure:
Lightning Network projects make transfers faster and cheaper, enhancing the use of Bitcoin for daily life, which increases demand for it.
7. Digital Scarcity:
The total number of bitcoins does not exceed 21 million, and this scarcity, akin to gold's rarity, makes it a long-term investment asset in times of economic instability.
