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Key Drivers for Bitcoin’s Recent $13,000 Price Uptrend

Key Drivers for Bitcoin’s Recent $13,000 Price Uptrend

Recently, the bitcoin price surpassed the $13K threshold, as part of an unexpected uptrend. What makes this jump so special is the fact that it represents the highest value BTC has reached over the last 16 months. Many believe that this is the start of yet another bull run - although there may be some truth to this claim, it is too early to determine whether higher values will be reached in the near future.  

This article will go over some of the reasons that caused this recent uptrend. 

1. PayPal announces support for cryptocurrencies

PayPal represents one of the world’s most popular online payment providers. Rumours surrounding a potential cryptocurrency integration have been around for years, despite the lack of an official statement on the subject. Now, PayPal has announced that the platform will facilitate the purchase and sale of several cryptocurrencies, including bitcoin, ethereum, litecoin, and bitcoin cash. According to Dan Schulman, the CEO of PayPal: “We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce."

Value increases are often linked to cryptocurrency adoption by prominent merchants and payment processors. After the announcement, the BTC price jumped from $12,300 to $12,900. 

2. Bitcoin’s market dominance rises

Technical analysis of market trends shows that bitcoin is actively outperforming other cryptocurrencies and tokens. Increased market dominance usually encourages additional investments - thus, the price increased by acting based on the laws of supply and demand. However, some voices suggest that on-going values above $13K will not be attained at this time, as the coin needs to find its support to avoid abrupt falls later down the road. 

3. Increased market dynamics and prevalence of DeFi and stablecoins

It is well-known that the bitcoin price usually influences other coin prices. However, recent trends indicate that cryptocurrency usage as a whole is also bound to drive the bitcoin price. Over the last few months, we have noticed an increased prevalence of stablecoins, which are normally used for value protection in times of market volatility. Furthermore, millions of dollars are actively being invested decentralized finance (DeFi) projects, thereby increasing crypto awareness and adoption at a macro scale. 

Based on everything that has been highlighted so far, it’ll be interesting to observe whether the recent market trends will encourage yet another high-value bull run for cryptocurrency prices.

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