In the meantime, Bitcoin is on fire, recently trading at $99,200 and $99,700 as it approaches the historic $100,000 threshold. The cryptocurrency has been booming since the news hit, up 2.8% today. It’s currently back in position to test the $100,000 level for the first time since early February. Enthusiasm for this upward momentum is spreading and for good reason. Historical trends following each Bitcoin halving, bullish overall market sentiment, and bullish macroeconomic factors are all fueling this growth. As Bitcoin continues to prove its strength, this momentum is attracting investor interest in alternative cryptocurrencies like Stacks (STX).

The cryptocurrency’s ability to shoot for the stars and all-time highs once again has created a bullish sentiment to return to the space. As these catalysts converge, the next few weeks might be definitive for Bitcoin and the entire crypto ecosystem.

The Halving Effect and Market Cycles

Bitcoin’s present rally is driven by hope over its historical appreciation post halving events. Unsurprisingly, investors are keen to discover if indeed history does repeat itself. The most recent halving of the BTC reward occurred in April 2024. This occurrence halved the reward for miners to add new blocks, which further slows the pace at which new Bitcoin is introduced into circulation.

As the chart above shows, Bitcoin price has consistently undergone major price appreciation in the 12-16 months following a halving. For Bitcoin, the window from April 2025 to August 2025 is critical. In history, it’s typically spelled the top of past bull market cycles. This pattern has bred a dangerous conviction, or hubris, among many investors. In short, they believe that Bitcoin’s primed for a major breakout over the next several months.

Changpeng Zhao (CZ), the founder of Binance, has an ambitious bleeding-edge prediction. He thinks that Bitcoin is still likely to reach $500,000-$1,000,000 in this market cycle. Though these types of predictions should always be taken with a grain of salt, all have added to the very bullish sentiment building around Bitcoin.

Catalysts Fueling the Ascent

Far from just the halving cycle, there are numerous other catalysts driving Bitcoin’s rise. These range from macroeconomic creative destruction to globally available Bitcoin-backed investments to not missing out on Internet Age developments.

Rumored US-UK trade pact is stoking bullish expectations in the market. At the same time, increasing hope for some kind of trade deal with China is helping pump that optimism up even further. Any positive move in international trade raises investor optimism and risk on. Such a shift would likely create strong benefits for assets such as Bitcoin.

According to the CME FedWatch Tool, there’s a 30% chance of an interest rate cut. That’s exactly what could take place at the Federal Reserve’s next policy meeting. On the monetary policy front, a more accommodative Federal Reserve could increase Bitcoin’s attractiveness. As we previously explained, lower interest rates tend to increase the attractiveness of alternative, non-fixed income assets like Bitcoin to investors.

Altcoins Riding the Bitcoin Wave

Just as Bitcoin closes in on $100,000 and beyond, so too are other cryptocurrencies surging into the spotlight. Stacks (STX), for instance, is quickly becoming a favorite as investors look for Bitcoin beta plays. These are other cryptocurrencies that, while moving largely in step with Bitcoin, can offer greater upside.

Interesting new approaches to incentivize holding are popping up. The BTCBULL token will begin quarterly token burns once Bitcoin reaches $125,000. After which, it will keep burning tokens for each additional $50,000 increase in Bitcoin’s price. Airdrops of BTCBULL tokens will be ongoing at each $50,000 increment. If Bitcoin exceeds $125,000, each new increment of $25,000 will result in either a Bitcoin airdrop or a BTCBULL token burning.

These are all strategies to cash in on Bitcoin’s boom. They incentivize holders of ancillary tokens, which generates more excitement around the overall cryptocurrency ecosystem.