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Bitcoin, the first and most well-known cryptocurrency, has been steadily increasing its price. But why is this happening?
Limited supply: The number of Bitcoins is limited to 21 million, which creates scarcity. As demand increases and supply remains constant, the price tends to rise.
Growing demand: More and more investors, both retail and institutional, are attracted to Bitcoin as a valuable asset. This increased adoption pushes demand upward, which contributes to the price increase.
Safe haven perception: Bitcoin is often perceived as “digital gold.” During times of economic uncertainty, many people choose to buy Bitcoin as a way to protect their capital against inflation or economic crises.
Institutional Adoption: The entry of major financial institutions and corporations (like Tesla or MicroStrategy) into the Bitcoin market brings more legitimacy to this cryptocurrency and attracts more capital.
In short, the increase in the price of Bitcoin is fueled by a limited supply and a rapidly growing demand, supported by increasingly diversified investors. As people increasingly believe in the long-term potential of Bitcoin, this boosts its price. $BTC #Bitcoin❗