The rise of Bitcoin last night (from March 2 to March 3) was mainly driven by the following factors:
Policy Support
US President Trump announced late night on March 2 that cryptocurrencies such as XRP, Solana (SOL), and Cardano (ADA) would be included in the US cryptocurrency reserves, and signed an executive order to establish a digital asset research task force. This statement was seen by the market as further recognition of cryptocurrencies by the government, directly boosting investor confidence and driving the prices of Bitcoin and related currencies to soar.
Market Sentiment and Technical Resonance
Bitcoin previously formed strong support around $82,000, attracting a large amount of dip buying after a short-term overselling. Technically, the price breaking through key resistance levels (such as $86,000) triggered market chasing sentiment, coupled with a significant increase in 24-hour trading volume, indicating active capital inflows.
Bullish Expectations from Institutions and Macroeconomic Environment
Several institutions (such as Standard Chartered Bank and Ark Invest) have continuously raised their long-term price targets for Bitcoin. Combined with the strengthening expectations of global economic recovery, investor risk appetite has rebounded, with some funds shifting from traditional markets to cryptocurrencies. Additionally, the easing of US inflation data and rising expectations for interest rate cuts (with an 80% probability of a cut in June) also provide macro support for Bitcoin.
Market Hotspots and Capital Game
The rise in Bitcoin prices has driven the entire cryptocurrency market to move in tandem, with mainstream currencies such as Ethereum also rising simultaneously. At the same time, the accumulation behavior of some large institutions (such as "whales" on Coinbase) has intensified short-term price volatility, leading to drastic fluctuations in the contract market, with over 170,000 people liquidated within 24 hours, further increasing market heat.
Summary: Trump's policy statements ignited market sentiment, technical breakthroughs and institutional capital inflows resonated, combined with macroeconomic benefits, jointly driving Bitcoin to rise rapidly in the short term. However, it should be noted that the cryptocurrency market is highly volatile, and changes in policy and technical aspects may trigger subsequent correction risks.
