If you are a crypto enthusiast and you have a few Bitcoins stored securely in your crypto wallet, you are surely jumping with joy at the latest Bitcoin bull run. The market has been moving towards a tremendous upswing and has hit quite the high in a short span of time. At the time of writing, Bitcoin is priced at $7048.23 and investors who had stocked up on Bitcoin are probably quite torn between holding and selling. But if you are simply an onlooker, wondering what the reasons prompted this sudden Bitcoin bull run, you are in luck because we are about to explain just that.
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The recent days have been marked with a great rally for the price of Bitcoin and we don’t blame you for being excited as honestly, so are we. Even though we are observing some correction in the price point, experts predict a return to the upswing without delay. So what really got this rally going?
Bitcoin’s Limited Supply
It is no secret that Bitcoin has an extremely limited supply, with a supply hard cap of 21 million Bitcoins in all of eternity. As time passes by, the supply of Bitcoin is falling and as a result of this decline in relation to demand, by the basic laws of economics, the price of Bitcoin seems to be rising.
Unlike many other coins which have a flexible supply cap, Bitcoin has been devised in such as way so as to make sure that there can never be more than 21 million Bitcoins in total. Because of that, it is likely to get more precious as time goes by.
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Fear of Missing Out (FOMO)
FOMO, or Fear of Missing Out, as it is known as, triggers a lot of the increasing demand for Bitcoins. As the price steadily rises, more and more people fear that they will miss out on buying Bitcoins when the price is still low and this in turn hikes up the demand.
When this spiked demand is juxtaposed with the lowered supply, the price automatically rises.
Clearly, the market trends are such right now that they are inducing FOMO in investors and creating a unique situation for the Bitcoin demand-supply curve so as to hike up the price quite effectively.
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