Bitcoin’s rally is likely influenced by persistent inflation, student debt forgiveness policies, and global trade restrictions.
Bitcoin's (BTC) increase of 7.6% between April 6 and April 8, reached an intraday peak of $72,747 and sparked widespread speculation about the underlying causes.
While some may hastily point to the inflows from the spot Bitcoin exchange-traded funds (ETF) as the primary factor, this perspective overlooks the broader motivations for buyers to push the price higher. It is more plausible that a range of macroeconomic factors played a key role in Bitcoin's recent price rally.
It seems misguided to assert that the surge in BTC's value was solely due to the purchase of $500 million in Bitcoin by the Ethena stablecoin USDCe as collateral. For instance, MicroStrategy’s acquisition of 9,245 Bitcoin, valued at over $600 million on March 19, did not prevent a 13.7% drop in BTC price in the subsequent six days. Given Bitcoin's daily spot volumes exceeding $10 billion, such inflows are relatively insignificant.
