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He believes that a combination of variables are behind the current bull market in cryptocurrency.
EToro CEO Yoni Assia believes that several forces are at work in the crypto market’s recent bull run, including the economic situation in the United States in the midst of the continuing COVID-19 pandemic.
“I think there is a confluence of circumstances that’s leading for this all-time high, both in crypto, as well in the stock markets,” Assia told Cointelegraph in an interview on Thursday. “We’re seeing unprecedented monetary and fiscal sort of reactions from federal governments all around the world leading to zero interest rates, and even negative interest rates in some places.”
Bitcoin (BTC) plunged below $4,000 in March 2020 when COVID-19 mitigation initiatives made global headlines. However, the blockchain industry has soared since then, with Bitcoin hitting new highs of more than $60,000 and a gross market capitalisation of more than $1 trillion.
“We’re seeing an unprecedented amount of money being printed by governments all around the world — some of them in a very unique and new concept of direct stimulus checks to consumers,” Assia said. “That has definitely raised the biggest discussion in human history about the value of money — a discussion that started very passionately within the crypto space,” he added, while also mentioning Bitcoin’s scarcity.
Bitcoin has a maximum supply of 21 million coins, but not all of them have yet been circulated. Every 10 minutes or so, a predetermined amount of new coins from this pool are released into the economy as an incentive for network miners. However, as time progresses, the amount of coins set aside for allocation will decrease; over the last decade, the block payout has decreased from 50 BTC to 6.5 BTC. Despite a solid, continuing precedent for rising investment demand, there will inevitably be no more coins in circulation.
According to Assia, the network’s underlying shortage is a clear idea that average people should comprehend. He also noted that people are not oblivious to unregulated money printing and low interest rates in conventional fiat markets. He also noted that crypto and stock sales are now more readily accessible to retail customers around the world, enabling mass engagement by individuals who would not have previously participated.
He reasoned that these causes had also caused an eruption,
“a renewed interest that hasn’t been seen before since December 2017, so since crypto rally 1.0, we haven’t seen so much interest in cryptocurrency as we are seeing right now with crypto rally 2.0 upon us.”