Bitcoin (BTC) price rallies above $96,000

Bitcoin's recent rally is fueled by a combination of macroeconomic factors, institutional investments, and favorable regulatory developments.

Bitcoin’s recent rally, pushing it above the $96,000 mark, is driven by a confluence of macroeconomic factors, institutional investments, and favorable regulatory developments.

Anticipation of Federal Reserve rate cuts, fueled by the U.S. economy’s contraction in Q1 2025, has increased odds of a cut at the upcoming June 18 meeting to 60%. With lower interest rates typically making traditional assets like bonds less attractive, investors may seek alternatives such as Bitcoin.

Major institutional players are also increasing their Bitcoin holdings. Strategy disclosed on Wednesday that it had acquired an additional 15,355 BTC for approximately $1.42 billion, bringing its total holdings to 553,555 BTC.

Bitcoin has reached an all-time high in realized market capitalization, suggesting strong investor confidence and substantial capital inflow. This metric, calculated by multiplying the total number of Bitcoins in circulation by the price at which they were last sold on an exchange, indicates that investors are holding onto their assets, anticipating further price increases.

The U.S. government’s establishment of a strategic Bitcoin reserve, comprising approximately 198,000 BTC, signals a significant shift toward embracing digital assets. This initiative, along with President Trump’s pro-crypto stance and regulatory reforms, has bolstered market confidence.

Amid ongoing trade tensions and economic volatility, investors are turning to Bitcoin as a hedge against traditional market risks. Bitcoin’s decentralized nature and limited supply make it an attractive store of value during uncertain times.

Analysts suggest that if current trends continue, Bitcoin could test the $100,000 mark in the near future. Factors such as anticipated Federal Reserve rate cuts, sustained institutional investment, and favorable regulatory developments support this bullish outlook.

However, investors should remain cautious, as market volatility and profit-taking could lead to short-term price fluctuations.

Here are the latest Bitcoin (BTC) metrics as of May 1, 2025 at 9:20 a.m. ET:

* Price: $96,080

* Volume: $237,554,248

* Market Cap: $1,921,520,000

* Total Bitcoins: 200,000

* New Highs: 32

* New Lows: 17

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