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The latest rally in the world’s largest cryptocurrency has been fueled by a combination of positive sentiment, growing confidence in U.S. crypto regulation, and increasing participation from institutional investors. According to James Butterfill, head of research at CoinShares, these factors have contributed to a strong wave of buying activity.
Interestingly, Bitcoin’s surge comes despite a decline in U.S. equity markets, particularly the Nasdaq. Historically, Bitcoin has shown a correlation with tech stocks, but its recent divergence suggests a shift in investor behavior, potentially viewing it as a hedge amid economic uncertainty.
Further fueling the rally are broader macroeconomic concerns, including Moody’s recent downgrade of the U.S. sovereign credit rating, which has reinforced the narrative of Bitcoin as a store of value against fiat currency instability.
On the regulatory front, there have been encouraging developments in the United States. The GENIUS Act — legislation aimed at regulating stablecoins — advanced in the Senate with a key procedural vote. In addition, support from political leaders, including President Donald Trump and his AI and crypto advisor David Sacks, has bolstered market sentiment.
Adding to the bullish outlook, JPMorgan CEO Jamie Dimon, previously a vocal critic of Bitcoin, announced that the bank will now allow clients to purchase the cryptocurrency.
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