3 Reasons Why Bitcoin's Rise Is Not Over • If the Fed lowers interest rates this year, it could lead investors to take on more risk. • Based on the last two Halvings, Bitcoin's price could reach a new ATH in the coming months. • Bitcoin's hard supply cap is the most important factor in the long run. • Our preferred 10 stocks are better than Bitcoin › Bitcoin (CRYPTO: BTC) is having another stellar year after a big pump of 154% and 119% in price in 2023 and 2024, respectively. As of July 2025, the price has risen by 27% so far (. Investors who have been critical of Bitcoin can no longer ignore it as a wise choice for their portfolio. However, considering the price is not far from the ATH of $123,091.61 set on July 14, it is understandable if you are concerned about a potential fall in the near term. This mindset is logical, especially when market participants seem influenced by the bullish sentiment. However, my view is to remain optimistic. Here are three reasons why I believe Bitcoin's rise is not over. Image source: Getty Images. ## 1. Favorable Macroeconomic Background The last time the Fed lowered the benchmark federal funds rate was in December. The uncertainty brought by the dynamic trade situation gives central bankers a reason to watch developments before making further interest rate cuts. Additionally, Inflation remains above the Fed's long-term 2% target, which doesn't help. Although the federal funds rate is still at an 18-year high, the stock market is performing quite well. However, people are still waiting for looser policies. The market expects the central bank to start cutting rates before the end of this year and continue into the new year. Goldman Sachs predicts that by July 2026, the federal funds rate will be close to 3%, far below the current 4.33%. This backdrop could be a bullish signal for Bitcoin. Investors will take on more risk to compensate for lower returns on their savings instruments. Additionally, the market will quickly realize that the Fed is trying to stimulate the economy, which could lead to a more positive outlook, thereby affecting the allocation of capital. 2. The Cycle After Halving Approximately every four years, Bitcoin undergoes an event known as Halving. This key event halves the number of new Bitcoins that miners earn for processing transactions. This is a preset schedule in the Bitcoin software that determines the supply growth rate of this cryptocurrency. Looking at Bitcoin's historical price charts, one can find that this digital asset has gone through similar cycles related to its Halving dates. The Halving events occurred in July 2016 and May 2020. Bitcoin reached a new ATH approximately 18 months after these dates. The latest Halving occurred in April 2024, which means a new peak could be reached around October this year. The story continues While we can look at past cycles to try to figure out what the future may hold, there are no guarantees. No two cycles are exactly the same, as many other variables could affect prices. In terms of its value, this time there are Spot Bitcoin ETFs ), Bitcoin treasury companies, and supportive regulation as optimistic reasons. 3. Scarcity Is Important in the Long Run In the short term, it’s easy to be captivated by predictions about Bitcoin's price movement. However, what investors should really focus on is the long-term perspective, such as what things will look like five or ten years from now. This viewpoint forces investors to think about what truly matters. In the case of Bitcoin, the simple fact is that there will only be 21 million coins in circulation. This hard supply cap distinguishes Bitcoin from nearly every other asset on Earth. After the recent Halving, Bitcoin's annual supply growth rate is lower than that of gold, making this digital asset even scarcer. Over time, more and more capital will start to flock to assets that cannot be depreciated, and Bitcoin's price is likely to rise significantly in the future. Should you buy Bitcoin stocks now? Before you purchase Bitcoin stocks, consider this: The Motley Fool Stock Advisor analysis team just identified 10 best stocks that they believe investors can buy right now... and Bitcoin is not among them. The selected 10 stocks could deliver huge returns in the coming years. Considering the list released by Netflix on December 17, 2004... If you had invested $1,000 when we recommended it, you would have $636,628! * Or when Nvidia released this list on April 15, 2005... If you had invested $1,000 when we recommended it, you would have $1,063,471! * Now, it is worth noting that Stock Advisor's total average return is 1,041% — compared to the S&P 500's 183%, this is outstanding. Don’t miss the latest top 10 list, get it by joining Stock Advisor. Check out the 10 stocks » *Stock Advisor returns as of July 21, 2025 Neil Patel has no positions in any of the mentioned stocks. The Motley Fool has positions in Bitcoin and Goldman Sachs and recommends them. The Motley Fool has a disclosure policy. "3 Reasons Bitcoin's Big Pump Is Not Over" was originally published by The Motley Fool.