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The Rise of Bitcoin: How US Central Bank’s Measures are Fueling the Price Surge

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On March 21st, a recent article by Bitfinex stated that the price of Bitcoin had risen significantly, driven by the US Central Bank\’s measures to restore financial stability. On Ma

The Rise of Bitcoin: How US Central Banks Measures are Fueling the Price Surge

On March 21st, a recent article by Bitfinex stated that the price of Bitcoin had risen significantly, driven by the US Central Bank’s measures to restore financial stability. On March 19th, driven by the influx of spot purchases, the price of Bitcoin hit a new high this year (28472 USD). The number of non zero balance wallet addresses in Bitcoin has soared to nearly 45 million, and the index moving average of new addresses has also shown a continuous upward trend.

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Bitcoin, the world’s most popular cryptocurrency, has been on a constant rise of late. The recent surge in its price has driven many to speculate about the reasons behind it. In this article, we’ll analyze the impact of the US Central Bank’s measures on the price of Bitcoin and the trends in non-zero balance wallet addresses.

Introduction

On March 21st, Bitfinex published an article stating that Bitcoin’s price surge was driven by the measures taken by the US Central Bank to restore financial stability. On March 19th, Bitcoin’s price hit a new high this year, reaching 28,472 USD. This upward trend has been fueled by the influx of spot purchases, which has resulted in Bitcoin’s price surge since the beginning of this month.

US Central Bank’s Measures

The US Central Bank has taken several measures to restore financial stability amid the COVID-19 pandemic. These measures include:
1. Lowering interest rates to near zero
2. Injecting liquidity into the market
3. Purchasing government bonds and mortgage-backed securities
These measures have resulted in a weakened US dollar and an increase in the demand for alternative assets, such as Bitcoin.

Non-Zero Balance Wallet Addresses

The number of non-zero balance wallet addresses in Bitcoin has soared to nearly 45 million, indicating a growing interest in cryptocurrency. The index moving average of new addresses has also shown a continuous upward trend, indicating that more people are joining the Bitcoin network.
These trends suggest that investors are increasingly turning to Bitcoin as a viable alternative asset to traditional investments.

Boom or Bubble?

With the constant rise in Bitcoin’s price, many have begun to wonder whether this is a boom or a bubble. While it is difficult to accurately predict the future of Bitcoin, there are a few factors to consider:
1. Bitcoin’s limited supply: There will only ever be 21 million Bitcoin in circulation. This scarcity could lead to a further surge in Bitcoin’s price.
2. Increased adoption: As more people begin to adopt Bitcoin, its value could continue to rise.
3. Regulatory risks: Regulations can affect the demand for Bitcoin and its price.

Conclusion

In conclusion, the recent surge in Bitcoin’s price can be attributed to the US Central Bank’s measures to restore financial stability. The increase in non-zero balance wallet addresses suggests a growing interest in cryptocurrency, with Bitcoin being seen as a viable alternative investment. However, it’s important to consider the risks associated with investing in Bitcoin, such as regulatory risks and market volatility.

FAQs

1. Can Bitcoin’s value continue to rise?
Yes, Bitcoin’s limited supply and increased adoption could lead to a further surge in its price.
2. Is Bitcoin a viable alternative investment?
Many investors see Bitcoin as a viable alternative asset to traditional investments.
3. What are the risks associated with investing in Bitcoin?
Regulatory risks and market volatility are the main risks associated with investing in Bitcoin.

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