Bitcoin has surged past a new record high of $106,000, pushing its total market value above $2 trillion. The price increase comes as pro-crypto policies are gaining momentum and MicroStrategy—the largest holder of Bitcoin—joins the Nasdaq 100 Index. These developments have reinforced investor confidence, with many now targeting $120,000 as the next milestone.

1️⃣ Demand for Bitcoin is Rising Like a Protective Barrier

More and more people are turning to Bitcoin as a reliable hedge against inflation. As the US dollar depreciates and inflation rises, investors are seeking alternatives that can preserve their assets. The digital, decentralized nature of Bitcoin makes it an attractive option during times of economic instability.

2️⃣ Limited Supply Creates Upward Pressure

The fixed supply of 21 million Bitcoins makes it scarce, which naturally increases its value as demand rises. Unlike traditional currencies, Bitcoin cannot be inflated by printing more. Pompliano also points out the possibility of the Federal Reserve cutting interest rates on December 18. This move would inject more liquidity into the economy, creating additional buying pressure.

3️⃣ Institutional Investors are Pouring In

Large institutions and corporations are investing billions of dollars into Bitcoin, adding credibility and trust to the market. A key catalyst is the approval of a Bitcoin ETF in January 2024, which has made Bitcoin more accessible to traditional investors. Since the ETF was approved, the price of Bitcoin has doubled, with billions of dollars flowing in from Wall Street.

4️⃣ Global Economic Instability

Global economic instability is also driving the rise of Bitcoin. Increasing inflation, weakening fiat currencies, and geopolitical challenges are forcing investors to seek safer havens.

Countries like Russia and Japan are reportedly mining Bitcoin to stabilize their economies. Bitcoin is increasingly seen as the digital version of gold—a reliable hedge against economic turmoil. Its decentralized nature makes it particularly appealing during times of instability.

5️⃣ Reliable Confirmation

The endorsements of prominent figures are another factor behind the rise of Bitcoin. Larry Fink, CEO of BlackRock, has become a strong advocate, with the company recommending a 2% Bitcoin allocation for investment portfolios. This has helped bring Bitcoin into mainstream financial strategies, driving even higher demand.

Contributing to this momentum, former US President Donald Trump's proposal to establish a Bitcoin reserve fund has created excitement. If implemented, it could integrate Bitcoin deeper into global finance, paving the way for broader adoption.

DYOR! #Write2Win #Write&Earn $BTC