Bitcoin's recent surge is attributed to institutional demand and favorable U.S. regulatory changes, according to Mohit Kumar of Delta Exchange. The introduction of crypto-friendly initiatives during President Trump's second term, including the White House's Digital Asset Report, has bolstered institutional participation. Key drivers include spot Bitcoin ETFs and corporate treasury allocations. Anticipated Federal Reserve rate cuts in 2025 are also prompting investors to move from cash to Bitcoin. On-chain data indicates long-term holders and ETFs are accumulating Bitcoin, with significant reserves being withdrawn from exchanges. The derivatives market shows increased optimism with rising open interest, marking this cycle as distinct due to institutional flows leading the rally.