Firstly, there has been a lot of positive news around cryptocurrency adoption recently.
Major companies like Tesla and Square have invested in Bitcoin, and more businesses are starting to accept cryptocurrencies as payment.
This suggests that the mainstream adoption of cryptocurrency is growing, which could drive up demand and lead to a market recovery.
Secondly, the regulatory environment is starting to become clearer.
Countries like the United States and the United Kingdom are working on creating clear guidelines around cryptocurrency regulation, which could help alleviate investor uncertainty.
Thirdly, Bitcoin’s hash rate, which measures the processing power of the Bitcoin network, has started to recover.
The hash rate dropped significantly after China banned cryptocurrency mining, but it has since started to rebound.
This suggests that the network is becoming more secure, which could help restore investor confidence in Bitcoin and other cryptocurrencies.