Though BTC has the maximum market capitalization yet lately investors have raised serious concerns to invest in BTC causing bearish trends in the last few months of 2020. The growth of DeFi projects has deviated investors from BTC to ETH yet that doesn’t end the correlation between these two blockchain-backed protocols. Grayscale’s latest announcement that its Ethereum Trust has become an SEC or Securities and Exchange Commission has pushed the value of ETH to the sky at US$383.42. The Total Value Locked or TVL has given a brisk challenge to Bitcoin but the latest announcement by Square to invest 1% of the cash reserve to BTC has brought the sentiments back to BTC.
Bitcoin exchange in India has been experiencing a surge in demand with the BTC rising exponentially on a daily basis after this event. At present, the price of 1 BTC has reached from US$10,600 to US$11,500 in over just a few days. It is almost a US$1,000 increase in value. Almost all the traders have had a negative outlook about the cryptocurrency but with the investment of 50 million in BTC by Square, the downside rally has been replaced by upside sentiments with better Bitcoin business opportunities emerging in the fray.
A similar trend unfolded in the year 2016 when Japan legalized Bitcoin as a legal tender and the prices of BTC launched for the sky. But the rally was soon disrupted when ETH started growing powering up the DeFi project and introduction of Ethereum as a super-computer that can transform various sectors.
What Will Be the Next Trigger for Bitcoin Price Movement?
As per the experts, BTC Halving/Halvening effect will have a considerable impact on the price movement of BTC. As per the trends seen in the last few months, a lot of new wallets have opened with more than 10,000 BTC added to the wallets. Bitcoin exchange in India has been witnessing a rigorous push in the past few weeks. As the FED has been driven to print more dollar-bills to sustain the economy after the global pandemic, there is more likeliness that BTC trade will again pick up the pace since the concept of democratizing the blockchain was to make it averse to influences created by political upheavals and economic scenarios. The present condition significantly favors these concepts causing BTC to skyrocket as the value of the dollar is falling during the pandemic crisis.