Analyst: Bitcoin's new rally is gaining strong momentum, driven by favorable policies and institutional demand

March 5 News, analyst Owen Lau stated that the current cryptocurrency market is experiencing a new wave of upward momentum, which is strong and may continue for some time. Lau pointed out that Bitcoin recently broke through the $73,000 mark, leading other major digital assets higher, mainly due to improved policy environment and active participation from institutional investors.

Lau emphasized that positive signals from U.S. regulation are the key drivers of the market recovery. Recent discussions around cryptocurrency market structure legislation and stablecoin regulation have led investors to expect that the U.S. will introduce clearer regulatory frameworks soon. Increased regulatory transparency helps attract large financial institutions to increase their investments, as institutions typically require clear compliance standards before entering the crypto market.

Additionally, Lau mentioned that institutional participation in digital assets has significantly increased, from asset management firms offering spot Bitcoin ETFs to banks exploring digital asset services, all pushing cryptocurrencies to gradually integrate into the mainstream financial system. Recent ETF capital inflows and short position liquidations have further strengthened the upward trend, which is also one of the main reasons for Bitcoin’s increased volatility.

The analyst believes that although the cryptocurrency market still exhibits high volatility, the combination of regulatory progress, growing institutional demand, and improved market infrastructure could support continued price increases. If these trends persist, the current rally may not only be a short-term rebound but also an early sign of market recovery, offering long-term opportunities for investors.

Lau advises investors to pay attention to policy developments and institutional capital flows to assess whether the market rally is sustainable. As the market structure matures, cryptocurrencies are expected to occupy a more stable position within the traditional financial system.