#$BTC

Recently, the price of Bitcoin (BTC) has experienced significant fluctuations, mainly influenced by the following factors:

1. Macroeconomic Environment: Major central banks, such as the Federal Reserve, have lowered interest rates, attracting more capital to flow into Bitcoin and other assets seen as hedges against inflation. A low-interest-rate environment typically increases demand for risk assets【8】【9】.

2. Regulation and Market Sentiment: The approval of Bitcoin ETFs and improved expectations for regulatory frameworks have boosted institutional investor interest, driving up prices. Additionally, Trump's reelection as President of the United States has injected confidence into the market, particularly as his supportive stance on cryptocurrencies is viewed as positive【9】【10】.

3. Bitcoin Halving Expectations: In April 2024, Bitcoin block rewards will decrease from 3.125 coins per block to 1.5625 coins. Each halving event reduces the supply of new Bitcoins, enhancing scarcity, which has historically been an important factor driving bull markets【8】【11】.

4. Global Demand for Crypto Assets: Geopolitical uncertainty, currency devaluation, and rising institutional demand have all enhanced Bitcoin's appeal as a store of value and payment tool【10】【11】.

However, despite the current bullish sentiment, analysts caution investors to be aware of short-term market volatility risks, especially potential price corrections or overheating in the derivatives market【9】【10】.

If you are interested in market dynamics, it is recommended to follow the subsequent impacts of the halving event and further developments regarding Bitcoin ETFs, as these will become significant driving forces for future price trends.