Bitcoin (BTC) became the first cryptocurrency to hit the $8,000 mark to the surprise of most people in the crypto world. This was only a dream a few years ago when cryptocurrency was born as a way of improving the global financial market.
Bitcoin has had a steady rise in the crypto world with millions of people around the world joining their platform over recent years.
According to traders and expert analysts, their recent boom might have raised a few eyebrows but there were no fundamental factors influencing the market at the time. Others tend to disagree with Mike Novogratz, the CEO of Galaxy Digital Holdings, claiming the developments that have been witnessed in the crypto world over the past few years are partially responsible for the current valuation spike.
The CEO further claims the original Bitcoin boom witnessed around 2016-2017 was influenced by the retail-driven investments by around 98%. This means more companies were buying cryptocurrency at a time when it looked like the future of finance. The recent developments in the crypto world are also affected by ‘credentializing’ according to the CEO especially with the recent move by Microsoft in the industry.
Microsoft recently announced their initiation of an identity solution to add to the Bitcoin blockchain. As more investments crowd Bitcoin, its value soars higher as witnessed in the recent spike. Microsoft is not the only big organization enabling the ‘credentialization’ of Bitcoin. Not long ago, Facebook lifted all the bans it had imposed on cryptocurrency and any blockchain-related advertisements.
Microsoft and Facebook are major companies with a huge effect on millions of people around the globe. If any of said companies backs up or indulges the idea of cryptocurrency, most of the people who use their services will believe every word. By validating blockchain technology and cryptocurrency, Facebook and Microsoft significantly affected the purchase and price of Bitcoin and the ripple effect can be felt even today.
Major institutions from all over the globe are also rushing to buy cryptocurrency with others welcoming the idea of including blockchain technology in their marketing strategies. Big institutions have a lot of influence in the financial world. The endorsing of blockchain technology and Bitcoin means more people will also rush to join the crypto world to move with the times.
Other than the evaluation made by Mike Novogratz regarding the involvement of Microsoft and Facebook and their role in the Bitcoin surge, there are other reasons to explain this boom. For starters, the market was used to negative news regarding cryptocurrency. The Tether-Bitfinex saga might not have affected the Bitcoin surge experienced recently. If anything, the price of Bitcoin continued to soar and consolidate with time.
Bitcoin is now past the $8,000 mark and while the crypto market is still unregulated, investing in this cryptocurrency will be rewarding in the near future. The ‘credentialization’ of cryptocurrency by popular platforms such as Facebook and industry leaders such as Microsoft has made it easy for more people to trust Bitcoin, which significantly contributes to its price surge.