What Was the Real Reason for the Recent Bitcoin Rally? Analytics Company Lays Out the Reasons in Depth

Cryptocurrency analysis firm QCP Capital has published a comprehensive market assessment following Bitcoin’s all-time high.

Pointing out that Bitcoin was traded at $118,000 this morning, the company stated that this level is an indicator of both enthusiasm in the market and structural solidity.

According to QCP Capital, the primary macro driver behind the rise is the Trump administration’s reintroduction of tariffs. The firm notes that manufacturers and exporters are accelerating imports, stockpiling, and increasing production ahead of the new tax period. This frontloading process has led to a significant expansion of trade and production credit.

The report stated, “Whether Trump will delay implementation again remains uncertain. However, these cycles of threats and delays positively increase economic uncertainty. Business confidence and production indices remain in growth territory.”

This view is particularly supported by the rising price of copper, a leading indicator of industrial health. This commodity, nicknamed “Doctor Copper,” signals rising industrial demand and improving liquidity conditions.

According to QCP Capital, the second key macro development driving Bitcoin’s rise is the accelerating era of financial dominance in the US. The firm notes that economic activity continues to expand despite high interest rates.

The US Treasury Department’s “Activist Issuance Strategy,” which repurchases long-term debt by issuing short-term bonds, rebalances the debt structure and reduces interest rate volatility. This creates a more predictable environment for financial markets.

“Short-term bonds are seen as almost cash equivalents. Limited long-term issuance keeps the MOVE index low and tightens credit risk premiums, supporting the gradual rise in financial assets,” the report said.

Before labeling the market euphoria a “bubble,” QCP Capital points out that it could actually be an indicator of mass adoption. With copper and global stock indices hitting records, it’s natural that monetary hedges like gold and Bitcoin would similarly surge.

The company noted that inflows into ETFs and public crypto treasuries are outpacing token supply and miner sales. Analysts believe indicators like STRK stock and SharpLink, which have absorbed ETH-related sales, suggest this structural demand is continuing.

*This is not investment advice.