The bull cycle that began in 2020, Bitcoin’s bull market phase, saw Bitcoin surpass $60,000 at the start of 2021. The aftermath of the halving and this bull market phase have placed Bitcoin in the spotlight. This has sparked significant investments from both institutional and retail investors. The attention Bitcoin has garnered is often compared to Tulipmania, a 17th-century event in Holland.

However, unlike Tulipmania, Bitcoin’s bull market phase shows no signs of slowing down. It continues to attract more investors and reach higher prices. If you’re new to the Bitcoin ecosystem and its bullish phase, we’ll explain why Bitcoin is considered one of the most successful cryptocurrencies and a valuable asset.

Background Information of the Bull Run

One reason Bitcoin has grown so quickly is its rarity. The total supply is capped at 21 million BTC. Nakamoto set this limit to ensure Bitcoin remains scarce.

Additionally, Nakamoto created a protocol that halves the block reward every four years. This reduces the available supply. In other words, fewer new bitcoins enter the market over time. As each halving occurs, the effects on the price become more noticeable.

What Fuels the ‘Tulipmania’

If you’re wondering what fuels this popularity of Bitcoin and Bitcoin investments, the first essential factor is the availability of online trading sites. It would be impossible for people to quickly gain BTC without registering online exchange sites. One great example is the Immediate Bitcoin that is an advanced auto-trading system which means it is a proper choice for beginners and experts alike. Moreover, the system is able to quickly derive conclusions from extremely large data sets and adapt to changing market conditions. Plus, to register here, you only need a deposit of $250.

Price of Bitcoin

More specifically, the halving that took place on the 11th of May 2020 decreased the block reward from 12.5 to 6.25 BTC. Before the event, the price varied, but stayed in the range of $8000 to $9000. After the halving, the price climbed to approximately $9,999. Then it followed an upward trend and broke several records.

For example, the first record we broke in November when it exceeded $18,000. Next, in December, it broke $20,000. This made one of the most successful and important years of Bitcoin, where the price has increased by 170%.  Next, what a lot of experts have predicted was an even higher price in January. Bitcoin’s price peaked at $40,000. What’s more, the interest of celebrities and corporations in BTC  produced an unprecedented value of Bitcoin of over $60,000 in March.

Valuation

The value of Bitcoin is also affected by the supply and rising demand, particularly during Bitcoin’s bull market phase. There are a couple of factors that restrict the supply, including bitcoin halving in the already finite number of BTC, which makes the cryptocurrency quite scarce.

In addition, the attitude of the investors is changing, and most institutional investors,  and also huge chunk of retail investors, are looking to get BTC because they consider it a good store of value for their long-term investments.

Furthermore, the fact that we have already mined approximately 18.5 million BTC is also driving the hype around this cryptocurrency.  With that being said, there are available options in obtaining Bitcoin, and it is the perfect time to consider your investment options, especially since it is predicted that the last Bitcoin will be mined, at this rate, in 2140.