The CEO of EToro, Yoni Assia, predicts multiple factors are at play when it involves the cryptocurrencies’ ongoing market Bullish run – among which, the economic situation within the U.S. amid the continued coronavirus outbreak.
“I think there’s a confluence of circumstances that are leading for this all-time high, both in crypto, also within the stock markets,” Assia revealed in a recent interview. “We’re seeing unprecedented monetary and financial kind of reactions from federal governments all around the world resulting in zero interest rates, and even negative interest rates in some places.
Earlier in March last year, the price of Bitcoin [BTC] dropped below $4k as COVID-19 prevention measures made global headlines. Since then, however, the cryptocurrency market has roared upward, with Bitcoin reaching milestone prices in more than $60k and an overall market capitalization of over $1 trillion.
“We’re seeing an unprecedented amount of cash being printed by governments all around the world – a number of them within a very unique and new concept of direct stimulus checks to users,” Assia added. “That has definitely raised the most important discussion in human history about the worth of cash – a discussion that started very passionately within the crypto ecosystem,” he added, while also mentioning Bitcoin’s scarcity.
Bitcoin features a maximum supply of 21 Mln coins, though not all of those are distributed as of yet. Every 10 minutes approximately, a group number of new coins from this allocation are released into the ecosystem as a gift for miners who contribute to the network. As time goes on, however, the number of coins earmarked for distribution will only go down; within the past decade, the block reward has dropped from 50 BTC to 6.5 BTC. Eventually, there’ll be no more coins entering circulation, despite a robust, ongoing precedent for increasing investor demand.
The network’s inherent scarcity is a simple enough concept for normal folks to know, consistent with Assia, who further outlined that people aren’t blind to excessive money-printing and low-interest rates within the traditional fiat markets. He also acknowledged that cryptocurrency and stock purchases are now more globally available to retail buyers, spurring mass-scale involvement from people that might not previously have participated.
He reasoned that these factors have also ignited “a renewed interest that hasn’t been seen prior to December 2017, so since crypto rally 1.0, we haven’t seen such a lot interest in crypto assets as we are seeing immediately with crypto rally 2.0 upon us.”