Bitcoin’s Growth: 3 Reasons Behind It, And It’s Not ETF
Bitcoin’s recent surge in price has captured the attention of both enthusiasts and experts. While many attribute this upswing to the approval of an ETF, Arthur Hayes suggests that there are more multifaceted reasons behind it.
Runaway inflation:
Hayes points to the persistent issue of inflation as the primary reason for Bitcoin’s growth. With economies grappling with the aftereffects of pandemic-induced financial policies, fiat currencies worldwide have seen their purchasing power erode. The extensive quantitative easing measures and stimulus packages implemented by central banks, while necessary during crisis times, have created an environment where inflation rates have surpassed comfort levels.
“Bald man” ETF rumor:
Hayes also highlights an intriguing reason behind Bitcoin’s surge: the whispers of a “bald man ETF.” Although the specifics of this rumored ETF remain shrouded in mystery, it may be referring to the CEO of Coinbase, often referred to as the “bald man” in the crypto community.
Onset of bull market:
According to Hayes, the third reason behind Bitcoin’s growth is the beginning of a bull market. He states, “We have the makings of a bull market.” Bull markets are characterized by optimism, investor confidence, and a broader expectation of good times ahead. The prevailing market sentiment, supported by strong fundamentals and increasing mainstream adoption, indicates that we could be on the cusp of another significant bull run.
In addition to these reasons, it’s worth noting the liquidation of a large number of Bitcoin short orders, amounting to a whopping 400 million, which further contributed to Bitcoin’s price surge.
This article was originally published on U.Today
