Surely everyone in the world has realized that today's finance is based tototally on debt (thus on liabilities in corporate terms); in this environment, the chances of Bitcoin and cryptocurrencies making a difference are very high: those who subvert the rules of the game first get marginalized then everyone follows en masse.
In this regard, a renowned cryptocurrency entrepreneur Arthur Hayes (CEO of BitMEX) has shared his insights on the current macroeconomic landscape, predicting a strengthening trend in certain factors that could further boost the rise of Bitcoin.
In a recent blog post, Hayes highlighted the looming threat of a sovereign debt bubble burst on the horizon, an event that could intensify the macro setup favoring cryptocurrencies.
Hayes stated that there is a prevailing narrative spreading among both private investors and institutional circles indicating that major economic blocs such as the United States, China, the European Union (EU), and Japan are weakening their currencies as a measure to reduce leverage on their government balances.
According to Hayes, this narrative has sparked further interest in crypto derivative products, such as US Bitcoin ETFs, as traditional finance seeks to preserve wealth from the current erosion of fiat currencies.
The market will continue its bullish trajectory
While Bitcoin has experienced a period of weakness due to US tax payments on April 15 and the initial reaction to the Bitcoin halving, Hayes asserted that the market will continue its bullish trajectory, driving prices higher.
Hayes emphasized that in markets, the strategies and factors that led to previous successes often differ from those that will drive future gains. However, he observed that:
"The macro setup that created the fiat liquidity surge fueling Bitcoin's rise will only accentuate with the onset of the sovereign debt bubble burst."
As the global financial landscape evolves, Hayes cautioned against premature profit-taking and encouraged investors to embrace the current market momentum. He also recommended maintaining the "Left Curve" mindset, focusing on seizing opportunities and adding winning positions.
Hayes added that he expects the bull market to continue and for Bitcoin to reach even higher price levels well beyond its current position.
Bitcoin stagnates as ETF inflows slow down
Recently, the price of Bitcoin has remained within the range of $66,000 due to the slowdown in inflows to Bitcoin spot ETFs.
According to SoSoValue, the total net inflow of Bitcoin spot ETFs yesterday, April 23, was $31.6354 million.
The Grayscale ETF GBTC experienced a net outflow of $66.8838 million in a single day.
The daily net inflow of the BlackRock ETF IBIT was $37.9233 million, and the current historical net inflow of IBIT reached $15.479 billion.
As reported, digital asset investment products faced another week of outflows, marking the second consecutive week of declining investor interest.
Outflows totaled $206 million, while trading volumes of exchange-traded products (ETPs) experienced a slight decline.
Bitcoin investment products recorded outflows of $192 million.
However, few investors saw this phenomenon as an opportunity for short-selling through short-Bitcoin strategies, which experienced outflows of $0.3 million.
Negative sentiment toward digital asset investment products was observed primarily in US ETFs, which saw outflows of $244 million.
Outflows were mainly concentrated in existing ETFs, while new issuance ETFs continued to receive inflows, albeit at lower levels than in previous weeks.
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