Reasons for the sudden surge in BTC:
* **Increased Expectations of a Fed Rate Cut:** November's lower-than-expected US inflation data significantly increased the market's probability of a Fed rate cut in December (from 35% to 89.2%). A rate cut could weaken the dollar and increase liquidity, benefiting risk assets like Bitcoin.
* **Ethereum Technology Upgrade Catalyst:** The Ethereum Fusaka upgrade was activated on December 4th, considered a significant milestone for the ecosystem, boosting market confidence and technical focus on cryptocurrencies overall.
* **Rebound in Institutional Fund Inflows:** Bitcoin spot ETFs showed signs of fund inflows, such as BlackRock's IBIT ETF exceeding $1 billion in daily trading volume, indicating increased institutional investment.
* **Shift in Policy and Market Sentiment:** The Trump administration released crypto-friendly signals, such as the possibility that the Fed Chair candidate might favor a rate-cutting policy. Simultaneously, the market sentiment after the previous sharp decline was in a state of "extreme fear," creating room for a rebound.
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