• Trump’s Bitcoin Reserve plan and state-level efforts drive optimism for Bitcoin’s adoption.
  • A 25bps rate cut from the Fed this week supports Bitcoin’s bullish momentum.
  • Institutional players, including MicroStrategy and miners, are expanding BTC reserves, limiting supply.

Bitcoin has surged to a new ATH of $105,250 just before the weekly candle closed. The movement has brought new interest among investors, with factors aligning to push BTC’s price to $120,000 this week potentially. Key events, including economic decisions and political initiatives, are contributing to this bullish outlook.

U.S. Bitcoin Reserve Plan Gains Momentum

Former President Donald Trump confirmed his plan to establish a U.S. Bitcoin Reserve (SBR). The initiative has created significant optimism within the market, as many believe it could accelerate Bitcoin adoption if Trump takes office. Several U.S. states, including Pennsylvania and Texas, are leading efforts to develop state-level Bitcoin reserves, as noted by Ash Crypto via the X platform.

On an international level, countries like Canada, Russia, Japan, Switzerland, and Argentina are also advancing similar initiatives. Analysts note that if Trump signs an executive order to accelerate SBR development on his first day in office, the United States could emerge as a leader in Bitcoin reserve building.

Expected Rate Cuts Fuel Bullish Sentiment

Bitcoin’s price rally is also supported by expectations of monetary policy easing. The Federal Reserve is expected to broadcast a 25 basis point rate cut during Wednesday’s Federal Open Market Committee (FOMC) meeting. Market estimates place the odds of this rate cut at 97%.

Around the world, central banks have already started reducing interest rates. The European Central Bank (ECB) recently announced a cut, while the Swiss National Bank followed by lowering its rates. Lower interest rates generally drive demand for alternative assets like Bitcoin, as they weaken traditional currency yields.

Institutional Accumulation Strengthens Bitcoin’s Outlook

Interest in BTC remains strong, with players actively increasing their holdings. MicroStrategy’s Michael Saylor continues to indicate plans for BTC purchases. Additionally, BTC mining companies such as Marathon Digital Holdings (MARA), Riot Platforms, and Hut 8 are increasing their Bitcoin treasuries.

These companies aim to support their financial positions, contributing to the ongoing accumulation trend that reduces Bitcoin’s circulating supply.

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