Now it is evident that Bitcoin price is at an all-time high. Prices have risen steeply, far too fast for my liking. I don't think such a growth is sustainable. The bubble is going to break very soon.
But what is causing such a price hype? I speculate this phenomenon is caused by the increase in the number of Bitcoin users. Hence, demand increases and supply dwindles. Thus price increases. Are there any other factors that could add to this price hype?
Indeed, you are completely right.
Bitcoin is defintiely in a bubble state right now. However we may see further pumps come before this bubble will pop, and i've been basically saying this since we hit $2,000 and it was evident that bitcoin was in a bubble but i believed that the bubble will see more fuel to it.
I don't think it's a bubble but what is happening is that smart investors are moving their portfolios away from the massive housing market bubble before it pops. Crypto is a gud hedge.
Could be this. However what's more likely is that it's 90% speculation. Housing is in a bubble as well, and i would argue that in a bubble far more advanced than bitcoin and when it pops it'll be absolutely catastrophic.