The price increase of Bitcoin ($BTC ) has been driven by multiple factors. First, the market’s expected changes in the U.S. Federal Reserve’s (Federal Reserve) monetary policy have significantly affected investor sentiment. Supporting demand for Bitcoin, many investors are turning to digital assets such as Bitcoin as a hedge against potential inflation risks as expectations for interest rate cuts grow.

Secondly, Bitcoin’s network activity is also on the rise, especially the increase in transaction volume and active addresses. This indicates increased user engagement, driving market interest in Bitcoin. This activity is often accompanied by price increases, further bolstering market confidence

The rebound in the trend is also an important reason for the rise of Bitcoin. As the overall crypto market recovers, Bitcoin, as the “gold standard” of digital assets, has naturally attracted more capital inflows. Many investors have begun to re-examine the investment value of Bitcoin, and this rebound trend has provided strong support for its price.