Exclusive: Fed Rate Cuts and Institutional Demand Fuel Bitcoin Bull Run – Head of Markets Research, Delta Exchange

Bitcoin’s latest surge isn’t just another retail-driven frenzy. In an exclusive interview with Coinpedia, Mohit Kumar, Head of Markets Research at Delta Exchange, explained that this rally is being driven by a distinct mix of catalysts, which begins in Washington.

Policy Tailwinds and Institutional Inflows

Kumar pointed to recent U.S. political and regulatory shifts as the key driver of momentum. Since President Trump began his second term, the administration has rolled out a series of crypto-friendly initiatives. 

“The primary catalysts for this growth include a surge in institutional participation driven by spot Bitcoin ETFs, favorable U.S. regulatory and political developments such as the White House’s Digital Asset Report, and a growing trend of corporate treasury allocations to BTC,” he told Coinpedia.

He added that broader macroeconomic conditions are also playing a role. With markets expecting multiple Fed rate cuts in 2025, investors are rotating out of cash and into risk assets like Bitcoin.

On-Chain Conviction and Market Maturity

Beyond policy and institutions, on-chain data reinforces the rally’s strength. Kumar highlighted that long-term holders and ETFs are steadily accumulating Bitcoin, with significant reserves being moved off exchanges into custody, a sign of strong conviction.

 “These market dynamics are supported by strong on-chain and market structure trends,” he noted.

Derivatives markets are echoing this optimism, with elevated open interest in both futures and options pointing to rising speculative activity. According to Kumar, this combination of institutional demand, favorable regulation, and positive macro expectations has led to Bitcoin’s current momentum.

While retail participation is evident, particularly in rising wallet activity and search trends, Kumar stressed that this cycle looks very different from previous ones.

 “The integration of crypto into the macro-financial landscape has brought real maturity,” he told Coinpedia, highlighting that institutional-led flows are at the core of the rally.