Researchers from the Binance Research team identified several factors that triggered the November bitcoin rally.
Recall that the ascent of the largest cryptovoltaic currencies began at the end of October. BTC has been trading at its highest level since January 2018. On 6 November, Bitcoin jumped up to $16,000 on some trading floors, and now the coin is holding around $15,500.
Analysts pointed to five factors that created conditions for the BTC price to rise. The decline in investor interest in the DeFi market and the launch of the PayPal cryptographic service are some of the most important factors driving up the price of Bitcoin.
The decentralised finance market showed very good results in September and October. However, at the end of last month, investors began looking for other instruments in the cryptosphere. Their attention shifted to the largest digital currency.
The arrival of a giant like MicroStrategy at Bitcoin was another reason for the coin price to rise. Recall that this company recently confirmed that it keeps $425 million in bitcoin.
The presidential election in the United States is the fourth growth factor for BTC. Uncertainty in the global market, caused by political struggle in the strongest country, has undermined the credibility of the U.S. dollar.
As a consequence of this trend, alternative instruments of gold and bitcoin have risen in price. Moreover, analysts at Binance Research expect that capital inflows into precious metal and crypt currency will increase in the coming months if the US crisis drags on.
The last key factor stimulating the growth of bitcoin is the coronavirus pandemic. Many developed countries are announcing a massive ‚lockdown‘. Restrictive measures should stop the spread of COVID-19. Investors are afraid that the situation will get worse. They need more reliable forms of capital storage.
With the fall in trust in fiat money, more and more people are interested in BTC as the most reliable asset. Interest in crypt currency is growing worldwide, which is leading to increased investment in this tool, says the team’s research.