Bitcoin is closing in on $90,000 for the first time ever

Bitcoin, the world’s largest cryptocurrency by market capitalization, is on a tear, with its price surging towards the $90,000 mark for the first time ever. As of Monday night, the digital asset was trading just shy of the milestone, after blasting through the $80,000 level over the weekend.

The recent surge in Bitcoin’s price can be attributed to a number of factors, including increased institutional investment in the cryptocurrency market, geopolitical tensions, and the growing popularity of decentralized finance (DeFi) platforms.

Institutional investors, who were once skeptical of cryptocurrencies, are now increasingly warming up to the idea of investing in them. The entry of institutional players into the market has brought a new wave of capital, which has contributed to the surge in Bitcoin’s price. According to a recent report by the investment firm, Grayscale, institutions accounted for 80% of the total capital invested in cryptocurrencies in the first half of 2023.

Geopolitical tensions, particularly between the US and China, have also played a role in Bitcoin’s price increase. As investors seek safe-haven assets to hedge against inflation and political uncertainty, they are turning to cryptocurrencies like Bitcoin. The ongoing COVID-19 pandemic has also contributed to the rise of Bitcoin, as people increasingly look for alternative ways to store value and make transactions online.

Another factor fueling Bitcoin’s growth is the growing popularity of DeFi platforms, which allow users to borrow, lend, and trade cryptocurrencies in a decentralized manner. The rise of DeFi has created new opportunities for investors and traders, who are now able to access financial services that were previously unavailable to them.

Despite the recent surge in price, some experts believe that Bitcoin still has room to grow. Tom Lee, co-founder of Fundstrat Global Advisors, recently predicted that Bitcoin’s price could reach $100,000 by the end of 2023, driven by the increasing adoption of DeFi platforms and the growth of institutional investment in the cryptocurrency market.

However, not everyone is convinced that Bitcoin’s price will continue to rise. Some experts argue that the current surge is a bubble, fueled by speculation and hype, rather than fundamentals. They point out that the recent price increase has been driven largely by retail investors, who are often drawn to assets with high growth potential, but may not always have a solid understanding of their underlying value.

Whatever the case may be, it is clear that Bitcoin’s price is on an upward trajectory, and its momentum shows no signs of slowing down. As institutional investors continue to pile into the cryptocurrency market, and DeFi platforms continue to gain traction, it is likely that Bitcoin’s price will continue to rise in the coming months. Whether or not it will reach $100,000 by the end of 2023 remains to be seen, but one thing is certain: Bitcoin is closing in on $90,000 for the first time ever, and its future looks brighter than ever.