Here Are the 3 Tailwinds Behind Bitcoin's Latest Rally

Group 1 - Bitcoin is experiencing a significant rally, recently surpassing $126,000, driven by new demand sources and its fixed supply [2] - U.S. inflation remains above the Federal Reserve's 2% target, with the Consumer Price Index (CPI) increasing by 2.9% over the past year, prompting investors to seek scarce assets like Bitcoin [4][5] - The U.S. dollar is expected to weaken over the next 12 months, benefiting Bitcoin and traditional hedges like gold, as investors look for safety from currency-related issues [5][6] Group 2 - Corporate treasuries and digital asset treasury companies are increasingly adding Bitcoin to their balance sheets, contributing to its demand [7] - Strategy, formerly known as MicroStrategy, is the largest corporate holder of Bitcoin, with approximately 640,031 bitcoins, and its chairman is committed to purchasing more regardless of price [8] - Bitcoin is being utilized as a hedge against inflation and is also being acquired by digital asset treasury companies, especially as asset managers create Bitcoin exchange-traded funds [9]