These are likely to be the reasons that drive the next wave of big gains in Bitcoin
Prospects of interest rate cuts
Increased market liquidity
Safe haven demand
Increased investment attractiveness
Innovation and investment encouragement and macroeconomic stability
Rate cuts will reduce borrowing costs, allowing investors to obtain funds at a lower cost, thereby increasing investment in Bitcoin. Because interest rate cuts release more market liquidity, increase overall trading volume and demand, and drive up BTC prices. Rate cuts are often accompanied by rising inflation expectations, so some people may seek BTC as a tool to hedge inflation.
In the case of declining yields on traditional financial products, high-return assets such as Bitcoin are more attractive to investors, further increasing their market demand.
The interest rate cut environment is conducive to innovation and entrepreneurship, and more blockchain and cryptocurrency projects are funded and developed, which enhances the actual use value of Bitcoin.
Overall, a stable macroeconomic environment will enhance investor confidence and provide a solid foundation for future price increases in Bitcoin.
Former US President Trump will announce a new policy next week to include Bitcoin in the US strategic reserve.
National strategic reserves generally refer to important resources, such as oil, food or precious metals, that governments reserve to respond to emergencies or ensure national security. If Bitcoin is included in the strategic reserve, it means that the US government may purchase and hold a large amount of Bitcoin as a new strategic asset. It is undoubtedly a big positive
