Bitcoin’s massive and unexpected growth could be result of numerous things, not ETF specifically
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Bitcoin, the foremost cryptocurrency, has once again made headlines with its recent price surge. The digital asset leapt toward the striking $35,000 mark, prompting discussions among enthusiasts and experts. While many might hastily attribute this upswing to commonly understood causes, such as the approval of a Bitcoin ETF, Arthur Hayes suggests a more multifaceted reasoning.
First and foremost, Hayes points toward the persistent issue of inflation. As economies grapple with the aftereffects of pandemic-induced financial policies, fiat currencies worldwide have witnessed their purchasing power erode. Central banks’ extensive quantitative easing measures and stimulus packages, while necessary during crisis times, have now fostered an environment where inflation rates have surpassed comfort levels.
“Bald man” ETF rumor:
Hayes also highlights a particularly intriguing reason: the whispers of a “bald man ETF.” While the specifics of this rumored ETF remain shrouded in mystery, he might be hinting at the Coinbase CEO, who is often called the “bald man” in the industry.
Onset of bull market:
Hayes’s third reason is straightforward yet profound. In his words, “We got the makings of a bull market.” The inherent characteristics of bull markets are optimism, investor confidence and a broader expectation of good times ahead. The prevailing market sentiment, backed by robust fundamentals and increasing mainstream adoption, suggests that we might be on the cusp of another significant bull run.
To add another dimension to this analysis, it is worth noting the liquidation of a whopping 400 million in Bitcoin short orders overnight. Such a massive liquidation, in conjunction with the reasons Hayes delineated, provided the perfect storm for Bitcoin’s price to soar.