Why has Bitcoin surged?

1. Market sentiment and capital flows

1. Increased demand for safe-haven assets: In the context of increasing global economic uncertainty, investors seek safe-haven assets. Bitcoin, due to its scarcity and decentralized nature, is seen as an alternative hedging tool, attracting significant capital inflow.

2. Institutional investor participation: Institutional investors and large companies have shown increased interest in Bitcoin, such as MicroStrategy and other firms that continue to accumulate Bitcoin, driving market demand.

3. Inflow of Bitcoin ETF funds: Bitcoin spot ETFs have attracted substantial capital inflow, injecting new vitality into the market.

2. Macroeconomic factors

1. Weakening dollar: The decline of the dollar index has a positive impact on Bitcoin, a non-sovereign currency, attracting more investors.

2. Inflation hedging: With rising global inflation pressures, Bitcoin is viewed as an asset to hedge against inflation, attracting investor attention.

3. Technical factors

1. Favorable technical indicators: Bitcoin prices breaking through key technical resistance levels, such as the 200-day moving average, have boosted investor confidence.

2. Market supply and demand relationship: The limited supply of Bitcoin, combined with increasing demand, naturally drives up prices.

4. Policies and regulations

1. Impact of Trump’s policies: Trump’s tariff policies and attitudes towards Bitcoin may have indirectly influenced Bitcoin's price.

2. Changes in the regulatory environment: The regulatory policies of various countries regarding cryptocurrencies are becoming clearer, providing a more stable environment for the market.

It is important to note that Bitcoin's market is highly volatile, and investments should be approached with caution. Recently, the hero dog Conan from the Trump administration is worth paying attention to!