Bitcoin’s recent rally is fueled by a combination of macroeconomic factors, institutional investments, and favorable regulatory developments.​

The world’s most popular cryptocurrency surged above $96,000 on Thursday morning. Here’s why.

1. Anticipation of Federal Reserve Rate Cuts

The U.S. economy’s contraction in Q1 2025 has heightened expectations for a Federal Reserve interest rate cut, with odds rising to 60% for the upcoming June 18 meeting. Lower interest rates typically make traditional assets like bonds less attractive, prompting investors to seek alternatives such as Bitcoin.

2. Significant Institutional Investments

Major institutional players are increasing their Bitcoin holdings. Notably, Strategy acquired an additional 15,355 BTC for approximately $1.42 billion, bringing its total holdings to 553,555 BTC. This move underscores growing institutional confidence in Bitcoin’s long-term value.​

3. Positive Market Sentiment and Technical Indicators

Bitcoin has reached an all-time high in realized market capitalization, indicating strong investor confidence and substantial capital inflow. This metric suggests that investors are holding onto their assets, anticipating further price increases.​

4. Regulatory Support and Government Initiatives

The U.S. government’s establishment of a strategic Bitcoin reserve, comprising approximately 198,000 BTC, signals a significant shift toward embracing digital assets. This initiative, along with President Trump’s pro-crypto stance and regulatory reforms, has bolstered market confidence.​

5. Global Economic Uncertainty

Amid ongoing trade tensions and economic volatility, investors are turning to Bitcoin as a hedge against traditional market risks. Bitcoin’s decentralized nature and limited supply make it an attractive store of value during uncertain times .​

Analysts suggest that if current trends continue, Bitcoin could test the $100,000 mark in the near future.

Factors such as anticipated Federal Reserve rate cuts, sustained institutional investment, and favorable regulatory developments support this bullish outlook.

However, investors should remain cautious, as market volatility and profit-taking could lead to short-term price fluctuations.

Here are the latest Bitcoin (BTC) metrics as of May 1, 2025 at 9:20 a.m. ET:

• Current Price: $96,419 USD
• 24-Hour Change: +2.07% (↑ $1,959)
• 24-Hour High: $96,419 USD
• 24-Hour Low: $93,287 USD
• Market Capitalization: Approx. $1.9 trillion USD
• Realized Market Cap: All-time high (indicates strong investor holding behavior)
• 24-Hour Trading Volume: Over $30 billion USD
• Circulating Supply: ~19.7 million BTC
• Total Supply Cap: 21 million BTC
• Dominance in Crypto Market: ~52%
• Recent Institutional Buy: Strategy added 15,355 BTC ($1.42 billion)

ADDITIONAL BITCOIN RESOURCES: