Bitcoin (BTC) is a revision period that reflects sales pressures over the next few weeks. This creates concern among investors, is Bitcoin’s “bull run” over or is there a higher rise?
In general, there are macroeconomic and fundamental reasons why bitcoin allows for the closing of beneficial years, On a new upward stage.
As it is identified as an “oriental trader” in the Alpha community, Bitcoin is still on a “long-term bullish trajectory,” and there is a reason to provide a “good catalyst” for new rising urges.
Let’s take a look at these reasons:
1) Improved fluidity
Since the crisis in 2008, major central banks have resorted to vast policies to increase money supply. And in recent years, especially after the Covid-19 pandemic, This dynamic is accelerated by stimulus programs and high fiscal deficits.
Generally, the largest amount in circulation usually moves to rare assets, with Bitcoin, with an emissions limit of 21 million currencies, is one of the main receptors in that flow.
Historical relationships show that as global liquidity increases, the prices of alternative assets, such as gold and Bitcoin, tend to reflect their excess capital.
Looking at Oriental Traders, “We live in an age driven by liquidity,” which has been demonstrated when comparing gold yields with the S&P 500, which has increased by 762% and 734% since 2004, respectively.
However, as long-term gold prices reflect the depreciation of currency due to money printing, “Many of the great benefits of action are merely reflecting financial expansion.”
“These technological advancements, the artificial intelligence (AI) giants, and globalization have led to the S&P 500, which probably produced less than just that good returns than having gold bullion.
“Yes, there are large tech companies that are doing more innovative things and more devices than they were 20 years ago, but mainly because the government is printing money, it’s not because the economy is more productive, but the behavior is rising,” he said.
Compared to Gold and the S&P 500, these assets have not grown in the Bitcoin way. Since 2018, BTC is highly rated at 2,200%. On the other hand, the precious metals and inventory indexes have only risen 163.2% and 161.3% over the same period, respectively.
This shows that BTC is an asset that tends to do much more than traditional vehicles due to its basic quality. This has increased the facts of digital currency created by financial liquidity (M2) that financial liquidity (M2) has been performed, as seen in the following graph.
And while it is true that there has been a temporary separation between liquidity and BTC prices recently, the broadest trend that prices for this digital asset are driven by global financial issuance is fetal.
2) Interest rate reduction
On September 17, the Federal Reserve made important decisions on monetary policy, resulting in many of the market discounts that result in interest rate cuts. For oriental traders, the announcement appears imminent. On August 22, as reported by Cryptootics, it appeared that Federal Reserve President Jerome Powell could be a type of cut that is currently maintained at around 4.5% per year.
This expectation arises in response to the weakening of certain economic indicators, such as the labor market, and the need to stimulate activity through lower credit costs. Generally, when prices fall, seeking money borrowing becomes cheaper, and encourages capital flow to consumption, investment and, generally, assets that provide greater returns, such as Bitcoin.
In this context, traditional financial instruments such as Treasury bonds lose some of the appeal as their profitability decreases to the Federal Reserve’s adjustment compass. On the contrary, the best risk assets such as actions, raw materials, especially cryptocurrencies; They start to attract attention from investors looking for diversification and greater returns
Bitcoin is placed in a special way in this scenario. Low-price policies reinforce the narrative as a value-reserved sanctuary for dollars, as Treasure Bond performance decentralized alternatives and generate more incentives with limited offers. Furthermore, institutional interest in digital currency has increased, This is because managers and investment funds recognize the opportunity to include BTC-linked products within their portfolios.
In fact, the effects of these expectations have already been observed in the market. Cited funds (ETFs) and other BTC-based financial vehicles have registered a sustained increase in demand. This reflects the strengthening perception of currency usefulness as a tool for diversification, beyond short-term speculation.
The following NewHedge graph shows the relationship between interest rates (blue line) and Bitcoin (orange line). During low-cost periods, Bitcoin prices tend to grow with greater force, and it has been observed that rates usually coincide with the correction or integration stages will increase.
3) Bitcoin’s historical performance against other assets
Compared to the integrated market, Bitcoin holds a significant margin of growth. US stocks exceed $66 billion in capitalisation, with major European markets totaling over 10 billion, while Bitcoin is almost at around 2.3 billion. Meanwhile, gold remains at around 23 billion, which is proof The distance that separates digital currency from other assets that are still recognized as value reserves.
If Bitcoin reaches half its gold valuation, its capital will increase to 11 billion, This means that it will increase by nearly 400% compared to current levels. This possibility depends not only on the size of the market but also on structural factors such as limited offers. With up to 21 million coins and 95% already undermined, the assets incorporate a shortage that distinguishes them from equipment that is eligible for financial expansion.
Another related element is impulse or Momentum It maintains BTC. Although discussions about its role as a very long-term value reserve remain open now Bitcoin is working as a gold alternative for a new generation of investors and businesses. The use as a payment instrument continues to expand in a variety of sectors, enhancing legitimacy in the real world economy.
Bitcoin dominance within the cryptocurrency market also strengthens this paper. From 37% in 2022 to almost 58% in 2025, reflecting the movement of assets that are perceived to be stronger within the digital ecosystem. Roof combinations, scheduled shortages, and growing institutions and retail acceptance of this still far market Bitcoin is placed in a favorable position in the global liquidity scenario in front of other assets.
Risks to consider
Oriental traders have a reason to give Bitcoin hope in the coming months, but they are not exempt from any risk. In fact, there are elements that allow you to change the upward scenario.
For example, the possibility of loss of interest from investors that could move to new technological alternatives invoke the role of Bitcoin as a value reserve. Another factor is the finality of financial adjustments and long-term cycles of recession. This forces you to settle the cryptocurrency position to gain liquidity.
However, current courses of economic policy aim to maintain activity at lower fees, reducing the probability of restrictive scenarios in the short term.
