Why Bitcoin is Making a Strong Return

Bitcoin's value is climbing again, getting close to $100, 000. This sudden rise has surprised many, but there are clear reasons behind it. One big factor is the uncertainty around the U. S. Federal Reserve. Jerome Powell, the Fed's leader, recently spoke out about pressure from the Trump administration. He claimed there was an attempt to intimidate the Fed with a fake investigation. This news has made people question the Fed's independence. When people feel unsure about traditional financial systems, they often turn to safer investments. This is why gold and other precious metals have also seen price increases. But Bitcoin isn't just benefiting from this uncertainty. Low inflation rates are also encouraging people to invest in riskier assets like cryptocurrencies.Bitcoin isn't the only cryptocurrency doing well. Ethereum and Solana have also seen gains. Ethereum has risen over 4% in the last week, while Solana has increased by more than 3%. However, 2025 was a tough year for Bitcoin. Despite some support from the Trump administration, its value dropped by over 6%. This is a stark contrast to the S&P 500, which grew by about 17%. The situation worsened in late 2025. Bitcoin reached an all-time high of over $126, 000 in early October, but then it crashed. By late November, it had fallen to $84, 000, a roughly 33% drop from its peak. A significant part of this decline happened after the “October flash crash, ” where traders lost $19 billion in assets. The good news is that Bitcoin's price is looking up in 2026. It has started the year strong, and only time will tell if this upward trend will continue.