Drivers behind the rally
Several factors have contributed to Bitcoin’s recent surge:Macro uncertainty: Ongoing US government shutdowns and elevated national debt—currently exceeding $37 trillion—have added uncertainty to global financial markets.
Federal Reserve rate expectations: Investors anticipate further rate cuts from the US Federal Reserve, supporting risk assets.
Institutional demand: Strong inflows into US-listed spot Bitcoin ETFs and steady institutional confidence have reinforced market momentum.
On-chain and derivatives data: On-chain metrics and derivatives activity indicate restrained selling. Notably, $120,000 to $140,000 call options remain the most heavily concentrated contracts, showing trader interest around these price levels.
Vikram Subburaj, CEO of Giottus.com, said, “Market activity points to elevated leverage unwinding. Over $184 million in Bitcoin long positions were liquidated in the past 24 hours. That reset may prove healthy if it helps flush out weak longs before the next directional move.”Altcoins follow suit
The broader cryptocurrency market largely mirrored Bitcoin’s movements, with most altcoins posting mild declines. Litecoin saw an 8% rally, while BNB dropped 4% amid profit-taking across several memecoins.
Overall, traders appear cautious, awaiting clearer macro signals.
The Crypto Fear & Greed Index remains in the “greed” territory, reflecting a mix of optimism and caution.
Governments and bitcoin holdings
Several governments, including the United States, China, the United Kingdom, Bhutan, El Salvador, Ukraine, and Germany, hold portions of the global Bitcoin supply.
Governments typically acquire Bitcoin through seizures, purchases, mining, or donations. Sales may occur due to budgetary constraints, market timing, or legal obligations.
As of April 2025, government-held Bitcoin accounts for roughly 2.3% of total supply.
