The recent rapid price increase of major coins like Bitcoin (BTC), Ethereum (ETH), and BNB is due to a combination of various economic, political, and technical factors. Below is a clear and easy-to-understand analysis:
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🔥 1. Bitcoin (BTC) – The 'flagship' lifting the market
✳️ Reasons for a strong increase:
✅ Spot Bitcoin ETF approved in the US
• Major funds like BlackRock, Fidelity… have officially bought real Bitcoin to back the ETF → tens of billions of USD are flowing in.
• BTC is becoming a more 'legitimized' investment asset → more institutional investors are participating.
✅ Halving in April 2024 has occurred
• The halving event reduces the block reward, cutting new BTC supply by 50% → supply decreases while demand increases → price surges.
✅ Market sentiment is recovering strongly
• The fear has passed, the market enters the 'FOMO zone'.
• Financial institutions and international investment funds see BTC as digital gold for hedging global risks (war, inflation…).
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💎 2. Ethereum (ETH) – The root of DeFi & NFT
✳️ Reasons for the increase:
✅ Expectation for Ethereum ETF
• After the BTC ETF, the SEC is considering approving the spot Ethereum ETF → money flow could move to ETH similarly to BTC.
• This is a major driving force, helping ETH maintain its top 2 position.
✅ Ethereum has transitioned to PoS and reduced inflation
• Ethereum has transitioned to the Proof-of-Stake mechanism → the amount of ETH 'burned' during transactions exceeds the amount issued → ETH is experiencing slight deflation.
• This is similar to 'rare gold' → promoting long-term price increases.
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🔷 3. BNB (Binance Coin) – The strongest 'ecosystem' coin
✳️ Reasons for the increase:
✅ Confidence is recovering with Binance
• After the period of legal scrutiny and CEO CZ stepping down, Binance remains stable, maintaining its position as the world's number 1 exchange.
• Investors believe that BNB remains the 'central token' of the largest CEX ecosystem.
✅ Periodic BNB burning mechanism
• Every quarter, Binance burns a large amount of BNB → reduces supply, increases the value of each token.
• This 'deflationary' mechanism is similar to dividend-paying stocks.
✅ Many projects running on BNB Chain
• DApps, GameFi, DeFi, Meme… continue to thrive on the Binance Smart Chain → high demand for BNB.
