Bitcoin is showing signs of a potential rally as risk assets stabilize following a volatile weekend. The cryptocurrency is trading within 10% of its peak, buoyed by expectations of significant rate cuts. Swap contracts are now pricing in 125 basis points of cuts by the end of 2026, with Federal Reserve Chair Powell confirming a 0.25% cut this month, enhancing short-term risk sentiment. Gold has reached a record high of $4,022 per ounce, driven by central bank reserve accumulation and declining real yields. Bitcoin's correlation with gold has surpassed 0.85, indicating synchronized movements between traditional and digital value stores. Strong ETF inflows and institutional buying are contributing to the formation of a new rally base for Bitcoin.