What factors have driven Bitcoin’s price to an all-time high above $125,000 and a market capitalization around $2.5 trillion?
Why is this the correct answer?
This is correct because when large institutions buy Bitcoin through ETFs, they lock up coins and reduce available supply. At the same time, macro factors like interest rate cuts and a weaker dollar make risk assets such as Bitcoin more attractive, and market uncertainty (like a government shutdown) drives investors into alternatives. Together, higher demand and tighter supply naturally drive price and market capitalization higher.
Related Terms
AI-Generated Content Disclaimer
Important Notice: This content has been generated with the assistance of artificial intelligence. While we strive for accuracy, there may be errors or inaccuracies in the information provided. Please exercise caution and verify any information before making decisions based on it. This information does not constitute investment advice, financial advice, trading advice, or any other sort of advice. You should not treat any of the content as such. CryptoMeteo does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own due diligence and consult with a financial advisor before making any investment decisions.