Bitcoin has recently rebounded due to a mix of macroeconomic factors, institutional interest, and crypto-specific developments. One key driver is anticipation around potential interest rate cuts by the U.S. Federal Reserve later in 2025. Lower rates tend to boost risk assets like cryptocurrencies, as investors seek higher returns outside of traditional savings.
Another major factor is the recent Bitcoin halving event in April 2024, which reduced the block reward from 6.25 to 3.125 BTC. This halving cut new Bitcoin supply, increasing scarcity and historically leading to price rallies in the months that follow. Additionally, inflows into spot Bitcoin ETFs have continued to rise, reflecting growing institutional adoption and making BTC more accessible to traditional investors.
Geopolitical tensions and concerns about fiat currency inflation have also pushed investors toward Bitcoin as a potential store of value. On-chain data shows an increase in long-term holders and reduced exchange balances, signaling strong holding sentiment and reduced selling pressure.
Altogether, these elements—monetary policy expectations, reduced supply, institutional demand, and macro uncertainty—have contributed to the recent rebound in Bitcoin’s price, reinforcing its appeal as a hedge and investment asset.
