$BTC Analyst Explained: Bitcoin's Rise is Supported by These Two Critical Details!
Bitcoin has experienced a significant rise, surpassing the $87,000 level. Analysts indicate that this rise in Bitcoin is supported by an increase in global liquidity and a renewed strengthening of institutional interest.
Bitcoin's price has increased by 2.4% in the last 24 hours, reaching the level of $87,325. This increase has been particularly supported by the global rise in M2 money supply and the resumption of purchases by institutional investors. Michael Saylor's company, known as MicroStrategy, had previously purchased 3,459 BTC. This development led to a tightening of Bitcoin's supply, causing its price to move upward.
Dominick John, an analyst at Kronos Research, states that this rise in Bitcoin is a result of increased global liquidity and the renewed interest in M2 money supply by institutions. John mentioned that Bitcoin's rally is supported by signals from Strategy regarding increasing their BTC holdings. This situation has led to a contraction in Bitcoin's supply, propelling its price upward.
John also points out that for Bitcoin to truly enter a bull market, the U.S. Federal Reserve (Fed) needs to maintain interest rates at a steady level to sustain capital flows. 'It is critical for the Fed to keep interest rates steady and support capital flows for Bitcoin to fully enter a bull cycle. Additionally, clarity on Trump's trade tariffs will be decisive in ensuring broad market stability and increasing investor confidence,' says John.
Bitcoin's performance in April was remarkable, outpacing major stock indices like the S&P and Nasdaq, as well as U.S. tech giants, referred to as the 'Magnificent 7.'
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