Bitcoin surge to $72K driven by macro factors, not just spot BTC ETF inflows

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.

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