Coin World News reports that this week, cryptocurrencies have become the focus, outperforming traditional assets. Bitwise Europe's report attributes this rise to growing optimism regarding U.S. policy measures and the ongoing Bitcoin supply tightening. The core of the report discusses the possibility of the U.S. establishing a strategic Bitcoin reserve. Pennsylvania has already enacted legislation supporting such reserves, sparking speculation that other states may soon follow suit. Betting activity on Polymarket has amplified these expectations, with the predicted probability of establishing a national Bitcoin reserve skyrocketing to over 50% last week. The report also delves into Bitcoin's supply constraints, while demand from ETFs and corporations continues to grow. Inflows for U.S. spot Bitcoin ETFs have surged, surpassing the overall supply growth of Bitcoin, creating a supply-demand imbalance. This shortage is reflected in Bitcoin's liquidity and high liquidity supply indices, both of which have fallen to historical lows. Corporations are increasingly accepting Bitcoin as a reserve asset, with companies like Microstrategy making significant purchases of Bitcoin, reinforcing this trend. Researchers further explain that Bitcoin is not the only cryptocurrency benefiting from a more transparent regulatory environment in the U.S. Altcoins, including XRP, and meme coins like DOGE have also made progress. The Department of Government Efficiency has taken a crypto-friendly stance, adding momentum to these assets (especially for DOGE). However, Ethereum has not kept pace. This lag may be related to capital flows favoring other cryptocurrencies. On a broader economic front, the U.S. CPI data for October aligns with forecasts. Combined with other indicators, this strengthens expectations of a potential interest rate cut by the Federal Reserve in December, introducing another variable to the evolving cryptocurrency narrative. (Bitcoin.com)

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