Is the Driver Behind Bitcoin Prices the Plethora of Recent Big Endorsements? - Mitchell Dong
There has been a recent surge of announcements of big investors buying bitcoin, or at the very least acknowledging its prominent role in their investment portfolios.
This leads me to wonder, is this driving the recent run up of the bitcoin price? In September 2020, bitcoin was priced around $10,000, and currently, as of January 2021, it has increased to $40,000.
Consider this timeline:
It may be a self-fulfilling prophecy causing this upward spiral. If you make a bold, positive prediction or endorsement on a market, it is likely to cause followers and peers to do the same. This trend then would cause the price to go up further, which will eventually cause more competitors to come out of the woodwork due to the fear of missing out.
The upward spiral continues…until the buyers are exhausted.
What causes buyers to exit? Is it regulatory risk? Or possibly a big hack?
Do all buyers exit at once, causing a death spiral?