Historically low interest rates, QE, huge deficits. Same reason the stock market and real estate are going up as the economy tanks from a pandemic. Finance is completely decoupled from reality at this point. It’s like a big MMO.
Interest is at all time low in europe, and people are getting COVID cash. The ECB is also "creating" cash to ensure the euro is stable....
So if you have a lot of euros on your account not making any money, you either go to the stock market (Thats why its going up, especially the visible stock such as Tesla) and things like Bitcoin...
The problem is, at some point it will come back down again, and a lot of people will lose money.
Its all network effects, and people talking to each other about bitcoin and stocks and people jumping in... It starts to look like 1930 again.
There's a direct correlation in the last 3 months between billions of printed tether and btc price. In the last few months they printed 11 billion fake dollars. Click "3 months" here and look at the charts of tether market cap (how much they print) vs Price (BTC), it's an exact correlation:
Because it is early 2017. Everyone seems to get lost in the huge peaks and valleys and miss the slow growth due to supply impacts. Why did it go up in 2017? IMO the halving in july 2016. Same reason it is going up now, it halved in may 2020 and we are just now seeing the impact.