Bitcoin prices have been continuously rising recently, breaking through the historical high of $123,000, standing above $121,000, with an increase of about 10% in August, and the market still expects further upward potential. Behind this round of growth, signals of support from Wall Street institutions, Federal Reserve policy trends, and the team of former President Trump intertwine, injecting strong growth momentum into the cryptocurrency market ahead of the end of the year.
The wave of institutional and corporate cryptocurrency purchases continues to heat up
This week, the cryptocurrency market will face multiple key events. Bitcoin financial company Nakamoto plans to join the 'purchase army', intending to buy hundreds of millions of dollars worth of Bitcoin, following the footsteps of companies like Strategy. Strategy founder Michael Saylor revealed that the company will announce a new round of Bitcoin purchase plans this week—after increasing holdings by nearly $2.5 billion last week, Strategy's Bitcoin holdings are now close to 3% of the total (21 million), valued at $76 billion, with corporate-level accumulation continuously injecting confidence into the market.
Federal Reserve's interest rate cut expectations and policy adjustments become key variables
Another core factor affecting the market is U.S. inflation data and the direction of Federal Reserve policies. The latest Consumer Price Index (CPI) will be released this week, and traders expect the data to strengthen expectations for a rate cut in September—current data from the Chicago Mercantile Exchange (CME) shows that the market's expectation of a rate cut in September is nearly 90%, and if the CPI reading is below expectations, this probability may rise further.
It is noteworthy that former President Trump, who has repeatedly urged Federal Reserve Chairman Powell to cut interest rates, has appointed cryptocurrency supporter Stephen Moore as a temporary Fed governor. As the current chairman of the Council of Economic Advisers, Moore is expected to hold a dovish stance in the Fed's interest rate decisions, adding the possibility of easing policies, which typically benefits risk assets like Bitcoin.
Increased regulatory transparency releases market vitality
The recent announcement of 'cryptocurrency projects' by the U.S. Securities and Exchange Commission (SEC) has attracted attention, with analysts calling it the 'most transformative vision for cryptocurrency regulation' proposed by the current chairman. Gadi Chait, investment director at Xapo Bank, pointed out that as institutions accelerate entry through ETFs and regulatory transparency is enhanced through the SEC's new projects, combined with continued accumulation by companies like Strategy, the current market provides attractive opportunities for mature traders and long-term investors.
Under multiple favorable resonances, this week is viewed by the industry as a 'key window' for the cryptocurrency market, and the price trends of Bitcoin and the entire cryptocurrency sector are of great concern.
