Core Insights - Bitcoin reached $97,538 this week, marking its highest level in two months, yet remains 24% below its October record [1] - Experts suggest that Bitcoin is poised for a significant movement, influenced by external factors beyond Congress and federal regulators [1] Group 1: Federal Reserve Influence - Bitcoin performs well in low interest rate environments, and lower rates could benefit risk-on assets like cryptocurrencies [2] - The correlation between Bitcoin and tech stocks has increased, making Bitcoin more sensitive to Federal Reserve actions [2] - There are expectations that a new dovish Fed Chair, appointed by President Trump, will lead to a loss of Fed independence, which could catalyze a new Bitcoin high [3] Group 2: Institutional Involvement - The approval of spot Bitcoin exchange-traded funds (ETFs) in the US in 2024 has led to significant institutional investment, with major institutions purchasing billions in Bitcoin [4] - Ongoing institutional adoption is anticipated to be a key driver for Bitcoin's price increase in 2026 [5] - Recent positive flows into Bitcoin ETFs indicate a shift in market dynamics, with $1.6 billion in ETF shares purchased this week alone [6] Group 3: Market Dynamics - Bitcoin whales sold a substantial amount of coins after the cryptocurrency approached the $100,000 mark, contributing to a price decline [7]