- Several indicators suggest that the price of Bitcoin has entered the euphoric phase of the 2024/2025 rally.
- The gradual increase in the Crypto Fomo has coincided with the furtive quantitative softening (QE) of the Fed.
The price of Bitcoin (BTC) has rallied more than 4% in the last 24 hours to exceed a previous psychological ceiling of around $ 109,353 and reach a new record of all time of about $ 109,864 on Wednesday May 11 in the negotiation session of the North American environment. Bitcoin market capitalization exceeded 2.17 billions of dollars, exceeding Amazon and Google to become the 5th largest asset in the world.
The wider Altcoin market followed in tandem, therefore the total market capitalization of cryptography increasing to around 3.57 billions of dollars. Consequently, approximately $ 400 million was rekt of the crypto-levé, mainly involving short traders.
Major forces behind Bitcoin Pump today
Debt crisis in the United States
As the tariff war is accumulating, investors’ concerns moved to the high American debt in the middle of the planned stagflation. Earlier this week, Jamie Dimon, CEO of JPMorgan, stressed that the American debt of 36 billions of dollars, which represents 122% of the country’s GDP, is a major concern.
Meanwhile, the Fed recently bought more than $ 43 billion in American treasury vouchers, thus quietly returning to quantitative relaxation (QE). On Wednesday, the 20 -year -old American treasury yield increased by 5.104%, the highest level since November 2023.
Consequently, Robert Kiyosaki, a financial educator, noted that the US dollar will continue to weaken and push the price of the BTC and the higher short -term gold.
Regulatory clacularity of cryptography in the United States
On Wednesday, the US Senate advanced the law on stable -co -for geniuses with the necessary threshold of 60 votes. The bill is now faced with any changes, which could open the way to promulgation by August.
The notable progress of cryptographic regulations in the United States will contribute to the dominant adoption of digital assets, in particular by institutional investors.
The growing demand for institutional investors
The overall demand for Bitcoin by institutional investors, led by issuers and strategy and strategy of the United States BTC ETF, increased considerably in the last month. Consequently, the global offer of BTC on centralized exchanges fell to a multi -year hollow, which ultimately fueled bullish feelings.
Technical tail winds
The price of bitcoin gradually followed the price of gold, in the middle of the increase in the world money supply, in a recent past.
From the point of view of technical analysis, the price of the BTC is well placed to maintain its bullish momentum in the coming days and weeks, catalyzed by the institutional and commercial FOMO.
