The Bitcoin-based decentralized finance (BTCFi) sector has seen a remarkable growth of over 2,700% in value locked, increasing its total value to over $8.6 billion. This shift could turn Bitcoin from a passive asset into a productive one as interest rates decline, potentially enhancing Bitcoin's appeal as a yield-bearing investment. According to Binance Research, the rise of BTCFi and possible interest rate cuts could foster a positive sentiment towards Bitcoin, encouraging its adoption. Projects like Babylon and Hermetica have introduced innovative solutions that enable Bitcoin holders to earn passive income. Alongside this, long-term Bitcoin holders are resuming their accumulation of BTC, benefiting from a decrease in available supply on exchanges, which might lead to price rallies. Recent developments, such as the establishment of a US strategic Bitcoin reserve initiated by President Trump, further indicate a strengthening recognition of Bitcoin's value in the mainstream financial landscape.

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