#MarketRebound Key Factors of the Rebound in 2025
a. Bitcoin Halving (April 2024)
Although the halving occurred in 2024, historically its effects are felt most strongly about 6-12 months later. In 2025:
The new supply of BTC was cut in half
Scarcity began to generate upward pressure, especially with increasing institutional demand
b. Technical Recession in the U.S. (Q1-Q2 2025)
The U.S. economy entered a mild recession, which pushed the Fed to pause interest rate hikes and even consider cuts.
This weakened the dollar and strengthened safe-haven assets like Bitcoin and gold.
c. Institutional Adoption
Companies like BlackRock and Fidelity expanded crypto products.
Banks in Asia and the Middle East began offering Bitcoin as a store of value.
Some countries with high inflation (like Argentina or Turkey) allowed greater legal flexibility for BTC transactions.
d. Renewed Retail Investment
With fear overcome after the 2024 correction, small investors returned to the market looking to not miss out on the new momentum.
Social media and influential figures (like Cathie Wood and Michael Saylor) promoted Bitcoin as "the ultimate digital gold."