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The price and popularity of Bitcoin, one of the most widely used cryptocurrencies, in January 2024

Cryptocurrencies are digital assets that employ cryptography to safeguard transactions and control unit creation. They are decentralized, which means they do not rely on a central authority or middleman. Cryptocurrencies have gained popularity in recent years due to their potential to offer faster, cheaper, and more transparent transactions, as well as to provide alternative forms of money and value.

However, cryptocurrencies are also volatile and risky, as they are subject to market fluctuations, regulatory uncertainties, technical issues, and cyberattacks. Therefore, it is important to understand the factors that influence the price and performance of cryptocurrencies, and why some of them are trending today.

Bitcoin Breaks a Key Resistance Level: One of the main reasons why Bitcoin is trending today is that it has broken a key resistance level, which is a price point that prevents the price from rising further. According to Investopedia, Bitcoin broke the US$40,000 resistance level on Jan. 7, 2024, making investors believe that there is further upside potential. This level was previously tested several times in the past few months but failed to sustain. Breaking this level indicates that the demand for Bitcoin is higher than the supply and that the bullish momentum is strong.

Rising Inflation and Stimulus Expectations: Another reason why Bitcoin is trending today is that it is seen as a hedge against inflation and currency devaluation. Inflation is defined as a general increase in the costs of goods and services over time, which diminishes money's purchasing power. Currency devaluation is the loss of value of a currency relative to other currencies, which affects the exchange rates and trade balances.

Increased Adoption of Payment Applications: The third reason why Bitcoin is trending today is that it has increased its adoption and accessibility from payment applications and platforms. Payment applications and platforms are services that allow users to send and receive money, pay bills, buy goods and services, and store value using digital technologies. Some examples of payment applications and platforms are PayPal, Venmo, Cash App, and Stripe.

This move by PayPal is significant for the crypto market, as it increases the demand, liquidity, and utility of cryptocurrencies, especially Bitcoin. It also lowers the barriers to entry and increases the awareness and education of cryptocurrencies, as it exposes millions of users and merchants to the benefits and opportunities of crypto. Furthermore, it signals the mainstream acceptance and adoption of cryptocurrencies, as it shows that a major payment company is embracing and supporting the crypto industry.