The price of Bitcoin has surged unexpectedly for the following reasons:
1. Massive inflows into spot Bitcoin ETFs
Large financial institutions such as BlackRock and Fidelity have poured record amounts into spot Bitcoin ETFs, with inflows reaching around 15 billion dollars, significantly boosting demand.
2. Signals of monetary easing from the U.S. Federal Reserve
Statements indicating that the Federal Reserve may cut interest rates by about 300 basis points have led to a weaker dollar and strengthened alternative yield assets like Bitcoin.
3. Political pressures and catalyst trading
Statements from President Trump and supportive stances on cryptocurrencies have prompted investors to reevaluate, resulting in a wave of new buying.
4. Supply contraction and "short squeeze"
The amount of Bitcoin available for trading on exchanges has decreased, while the rising price has forced short sellers to close their positions, further amplifying the surge.
Summary:
This increase was the result of a blend of strong institutional support, favorable macroeconomic conditions, and technical moves driven by a balance between sudden overbought zones and a lack of supply, which propelled Bitcoin to break new record levels.
