Bitcoin is back on the rise for five reasons
2024-09-24

A number of factors, from macroeconomic changes to shifts in market sentiment, have come together to drive this wave of Bitcoin's rise.

Here are what I think are the five key reasons behind Bitcoin's latest rally:

 Rate cuts and inflation hedges 
The Federal Reserve's recent 50 basis point cut in interest rates impacted the market, with Bitcoin benefiting from a weaker dollar and accommodative monetary policy.
Bitcoin, like gold, is seen as a non-sovereign asset that is especially popular in times of fiscal excess, especially when U.S. debt levels reach $35 trillion.  So far this year, Bitcoin is up 45 percent, while gold is up 27 percent.

 The cryptocurrency industry is gaining support from both parties 
In addition, cryptocurrencies are gaining political support, with bipartisan support in the United States adding momentum to Bitcoin.  U.S. Vice President Holly Huckabee recently voiced her support for digital assets at an event in New York City, the first time the government has explicitly endorsed cryptocurrencies.

While Trump's victory may drive further policy support for the cryptocurrency industry, institutional interest in major assets such as Bitcoin is expected to remain strong regardless of the outcome of the election.

 The Bitcoin ETF is gaining momentum 
Institutional inflows into Bitcoin ETFs have been steady.  Over the past 10 days, the Bitcoin ETF has attracted $800 million in inflows despite the volatile price.
More institutions such as Morgan Stanley will launch Bitcoin ETFs, which could further drive inflows as investment advisers recruit clients.

 After halving, the miners are more stable 
Bitcoin miners are said to have adapted to the April 2024 halving event and their business has stabilized.
Computing power has rebounded, which shows that the mining industry remains resilient and further strengthens Bitcoin's foundation.

 Easing of selling pressure 
The company said the market has absorbed the major bitcoin selling triggered by the U.S. and German governments as well as Mt. Gox's distribution.

In addition, MicroStrategy raised $2.1 billion to buy more bitcoin, bringing the company's holdings to 252,220 BTC, or 1.3% of the total supply.

These messages are sorted out for everyone in the hope that everyone can use these signals to make profitable transactions for themselves.  Hope everyone can win in the market!