Bitcoin Bull Run Gearing Up—Analysts Predict Convergence of Powerful Catalysts – Markets and Prices Bitcoin News

Bitcoin’s bull market is accelerating, fueled by institutional adoption, Trump’s pro-crypto policies, and soaring ETF inflows, with analysts citing a confluence of positive catalysts ahead.

Bitcoin Bull Market Is Loading—Here’s What’s Fueling the Surge

Bernstein analysts believe bitcoin is entering its next major rally, driven by institutional investment, government policies, and the growing impact of U.S. spot bitcoin exchange-traded funds (ETFs).

The research firm attributes the current bull market to late 2023, when ETF approval expectations nearly doubled bitcoin’s price. Strong fund inflows subsequently pushed BTC to a record high before a brief pause, with the rally resuming after Donald Trump’s November election victory. Analysts, led by Gautam Chhugani, anticipate further gains, stating in a note to clients:

The next leg of the bitcoin bull market is loading up with a confluence of several positive catalysts.

President Donald Trump’s support for cryptocurrency has impacted the digital asset market, with his pledge to position the U.S. as a crypto hub contributing to bitcoin reaching a record high. Moreover, year-to-date inflows into bitcoin ETFs have neared $5 billion, with Bernstein projecting $60 billion by 2025. The SEC’s repeal of SAB 121 now allows banks to offer crypto custody services, further supporting bitcoin’s growth. Bernstein analysts noted that institutional and sovereign adoption positions bitcoin as a challenger to gold, highlighting its $2 trillion market value compared to gold’s $18 trillion.

Government initiatives are expected to shape bitcoin’s future, with Bernstein highlighting the Trump administration’s crypto task force as a key policy driver. Led by White House crypto czar David Sacks, the task force is evaluating the feasibility of a national bitcoin reserve, potentially funded by the Federal Reserve or U.S. Treasury. The U.S. government’s $20 billion in seized bitcoin could be added to this reserve, potentially triggering a global race among nations to accumulate the asset.

Another major development is the Trump administration’s creation of a sovereign wealth fund (SWF), which could strategically invest in major U.S. crypto firms, Bernstein stated, adding:

We believe the crypto task force (led by David Sacks) is focused on delivering the national bitcoin reserve, upon the direction of the President. The Trump administration also announced a sovereign wealth fund (SWF). We believe the SWF would consider key U.S. crypto companies/market leaders, as strategic assets to own.

Sacks recently said that the sovereign wealth fund could invest in bitcoin, adding to the growing speculation that major state-backed investment funds may enter the digital asset space. This follows a trend where institutions, including Abu Dhabi’s Mubadala Investment Company, have already made allocations to bitcoin ETFs. The move aligns with increasing institutional adoption as asset managers and hedge funds boost their exposure to crypto.

bitcoin.com