The Chief executive officer of Etoro, Yoni Assia, has opined that the bull market that is ongoing is driven by plethora of factors and one of such factors amid the ongoing Covid-19 pandemic, is the economic situation.
According to Yoni Assia, both in crypto and stock markets, there are all time high leading to a confluence of circumstances. According to Cointelegraph, from the Federal governments all round the world to zero interest there are fiscal and monetary reactions and there are interest that are negative in some places.
As Covid-19 prevention measures make global headlines, Bitcoin dropped below $4,000 and with Bitcoin reaching milestones prices in excess of $60,000, the crypto market has roared upwards to an overall market cap of over $1 trillion.
Also, according to Assia, there are unmatched amount of money being printed by governments all around the world. Some of them are very distinctive and novel concepts of direct stimulus checks to consumers.
There are a maximum supply of 21 million Bitcoin, and which all have not been distributed yet. A set of new coins from this allocation are released into the ecosystem, as a reward for miners who contribute to network. Also, as time goes on, however, the quantity of coins earmarked for distribution will only go down; in the past decade, the block reward has dropped from 50BTC to 6.5BTC. Eventually, there will be no more coins entering circulation, despite a strong and ongoing precedent for increasing investor demand.
The network’s inherent scarcity is an easy enough concept for normal folks to understand, according to Assia, who further noted that folks are not blind to excessive money printing and low interest rates in the traditional fiat markets. He also pointed out that crypto and stock purchases are now more globally available to retail buyers, spurring mass scale involvement from people who may not previously have participated.