#MarketRebound There are several reasons why cryptocurrency markets have been rising recently. Here are the most important ones clearly:
1. Bitcoin Halving (April 2024)
Every four years, the reward for mining Bitcoin is halved, which decreases the new supply of BTC. Historically, this has generated bullish cycles because less supply, combined with the same or greater demand, drives up the price.
2. Institutional Investment
Financial giants like BlackRock, Fidelity, and MicroStrategy are buying large amounts of BTC and creating products like ETFs. This:
Increases demand
Legitimizes the market to other investors
Attracts more institutional capital
3. Expectations of interest rate cuts (U.S.)
If the Federal Reserve lowers rates, risk assets like Bitcoin become more attractive. That is, more money flows into cryptocurrencies seeking higher returns.
4. Value store narrative
With inflation, rising debts, and geopolitical tensions (like the conflict in the Middle East), many see Bitcoin as a “digital gold” to protect their capital in the long term.
5. General optimism in the crypto market
Ethereum is benefiting from possible upgrades and increased use in DeFi and NFTs.
Altcoins are following the momentum of BTC.
There is greater adoption by users, countries, and companies.