Bitcoin (BTC) has recently seen a notable uptick in its price, reaching $86,850 at the time of writing, reflecting a 1.7% increase in the past 24 hours.
This positive movement comes at a time when investors are increasingly looking toward alternative assets in response to economic and geopolitical concerns.
With a market cap of $29.9 billion and a 24-hour trading volume of $29 billions, Bitcoin’s increasing price points to growing investor interest, especially as global uncertainties continue to impact traditional financial markets.
Why Is Bitcoin Gaining Traction?
Several factors are contributing to Bitcoin’s upward price movement, including broader economic conditions and the so called ‘Liberation Day‘.
1. Bitcoin as a Safe Haven Asset
In uncertain economic times, Bitcoin is increasingly being seen as a store of value, similar to gold. With the ongoing trade tensions and the looming potential for new tariffs imposed by the Trump administration, investors are becoming wary of inflationary pressures and currency fluctuations. In this environment, Bitcoin’s decentralized nature and its capped supply make it an attractive hedge against these risks.
As investors seek to preserve wealth amidst potential economic disruptions, Bitcoin is increasingly viewed as a safe haven, which could continue to drive demand and push its price higher.
2. Decentralization Advantage
Bitcoin’s decentralized nature is another key factor behind its rising popularity. Unlike traditional assets, which are subject to government regulation and intervention, Bitcoin operates on a peer-to-peer network, independent of centralized control. This makes Bitcoin less susceptible to government policy shifts, economic sanctions, and trade disputes.
As tensions around the world rise, including the concerns surrounding potential tariffs and trade wars, investors are increasingly looking for assets that are less dependent on central authorities. Bitcoin, as a non-government-controlled currency, offers this advantage, making it more appealing to investors in times of geopolitical instability.
3. Increased Adoption Amid Financial System Woes
Another driving force behind Bitcoin’s recent surge is the growing interest from both institutional and retail investors. As confidence in traditional financial systems begins to waver, especially with aggressive economic policies being enacted in various countries, Bitcoin provides an alternative.
Investors, particularly those with concerns over the traditional banking system and government monetary policies, are looking at Bitcoin as a viable solution. The more Bitcoin is adopted, the greater its legitimacy as an asset class, which could drive further mainstream acceptance and help accelerate its price growth.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/3-reasons-why-bitcoin-surged-past-87000/