1. Liquidity & New Money Entering
When new money flows in, prices rise because demand > supply.
Sources of new liquidity:
Retail investors (FOMO)
Institutional investors
ETFs & funds
Exchanges/custodians offering new products
2. Positive News & Narratives
Narratives drive hype cycles. Example:
“Bitcoin ETF approval”
“AI + Crypto narrative”
“Halving” narrative
“Blockchain adoption”
Narratives cause FOMO → buying → price pumps.
3. Halving & Supply Reductions
Bitcoin’s halving reduces miner rewards.
Lower supply + same or higher demand = price increases.
4. Lower Interest Rates / Easier Money
When central banks lower rates:
borrowing becomes cheap
risk assets pump (stocks + crypto)
Crypto behaves like a risk-on asset.
5. Institutional Adoption
More institutions = more credibility & capital.
Examples:
BlackRock ETF
Fidelity spot products
Banks offering custody
This brings huge pools of capital.
6. Exchange Listings
When a big exchange lists a coin, new demand arrives.
Example: Coinbase/Binance listings often cause pumps.
