$BTC 4 yuan received for a Christmas tree

Bitcoin's 10% increase over the week may indicate the following aspects:

Macroeconomic Level

Monetary Policy Impact: It may be due to easing signals in the monetary policies of major global economies, such as the Federal Reserve lowering interest rates or hinting at rate cuts, resulting in increased market liquidity. Investors, in pursuit of higher returns, may invest some funds into the Bitcoin market, driving up its price.

Economic Situation Changes: In times of global economic instability or recession risks, Bitcoin, viewed by some investors as a safe-haven asset, may attract more capital inflow, leading to price increases. Investors may believe that Bitcoin is not constrained by the traditional financial system and can maintain or increase its value during economic turmoil.

Regulatory Policy Level

Regulatory Attitude Warming: If the government shows a more relaxed attitude towards Bitcoin regulation or has clearer and friendlier policy expectations, such as U.S. Vice President Kamala Harris expressing support for digital assets, it will greatly boost market confidence and attract more investors into the Bitcoin market, driving prices up.

Improved Regulatory Framework: When regulatory authorities introduce more comprehensive and clear regulatory frameworks, market participants feel that the risks in the Bitcoin market are reduced and compliance is enhanced, leading to increased investment and trading in Bitcoin, resulting in price increases. For example, the upcoming implementation of the EU's Crypto-Asset Markets Act will bring clear regulation and oversight to the EU cryptocurrency market, stabilizing market sentiment and attracting investment to some extent.

Market Supply and Demand Level

Demand Growth: The continued inflow and increasing demand for Bitcoin ETFs indicate that traditional financial investors' acceptance and demand for Bitcoin are rising. Large purchases by institutional investors like MicroStrategy not only increase market demand but also serve as a demonstration effect, encouraging other investors to follow suit, driving up prices.

Market Speculation and Herd Behavior: Some investors may be attracted by the short-term upward trend in the market, blindly following the trend to buy, further driving up Bitcoin's price. When market enthusiasm is high, such herd behavior may intensify the price increase.