Bitcoin (BTC) has been steadily rising over the past few weeks. Earlier today, the price of Bitcoin briefly touched $78,000, but is currently facing strong resistance at this level. This is the first time Bitcoin has reached the $78,000 mark in nearly three months; the last time it hit this level was in early February this year. According to CoinGecko’s Bitcoin data, Bitcoin’s price has risen 2.5% in the past 24 hours, 5.3% over the past week, 8.9% over 14 days, and 13.8% over the past month. However, looking at the annual chart, Bitcoin’s price is still down 11.7% year-to-date. Let’s explore whether Bitcoin (BTC) may be entering the early stages of a new bull market.
Is Bitcoin about to enter a new bull market?
Bitcoin's (BTC) recent rally is likely due to President Trump's desire to quickly reach a nuclear agreement with Iran. Although the U.S.-Iran conflict has caused significant investor concern, a Middle Eastern war may soon come to an end. A U.S.-Iran agreement could significantly boost investor confidence. Additionally, if the war ends, oil and natural gas prices are likely to fall, potentially encouraging increased risk appetite. Bitcoin (BTC) stands to benefit substantially from this development.
Second, the Federal Reserve will welcome new chair Kevin Warsh in May. Although the likelihood of a rate cut in April 2026 is low, we may see a rate reduction next month. A rate cut could trigger another bull run for Bitcoin (BTC). Warsh is likely to be more responsive to President Trump’s desire to lower interest rates.
If the above two developments are realized, Bitcoin (BTC) and the broader cryptocurrency market could enter a new bull market. However, retail investors' risk appetite remains low, which may pose challenges to the bull market.