Bitcoin has recently exceeded $90,000, with Arthur Hayes predicting it may be the last chance to buy below $100,000. U.S. Treasury buyback programmes are expected to enhance liquidity, potentially benefitting Bitcoin. The cryptocurrency’s price increase has revived its narrative as a safe haven asset, with institutional confidence returning after new investments in Bitcoin ETFs.
Bitcoin recently surpassed the $90,000 mark, reaching its peak since early March. Former BitMEX CEO Arthur Hayes suggests that this might be the last opportunity for investors to buy Bitcoin (BTC) below $100,000, as stated in a post on X. He is set to release an essay titled “The BBC Bazooka,” discussing the potential implications of U.S. Treasury buybacks on Bitcoin’s value.
The U.S. Treasury’s buyback initiatives aim to enhance liquidity, stabilise interest rates, and prevent disruptions in the bond market, which is crucial for the global financial system. These programs can infuse liquidity into the economy, encouraging investors to shift their capital into solid assets like Bitcoin and gold, thus potentially driving up Bitcoin’s price.
Currently, Bitcoin has increased by 3.3% over the last 24 hours with a trading price of $90,230, marking its highest level since March 7. This spike above $87,000 has reignited discussions about Bitcoin’s function as a safe haven asset amidst economic uncertainties. Crypto trading firm QCP Capital asserts that Bitcoin is beginning to take on a role similar to gold as a hedge against economic instability, a narrative that had waned in recent months.
QCP Capital highlights that the deterioration of equities last week has rejuvenated the perception of Bitcoin as a protective asset against inflation. If this trend continues, it could boost institutional investment in Bitcoin. The report notes a return of institutional trust, highlighted by positive inflows into US spot Bitcoin exchange-traded funds (ETFs) after prior massive outflows.
Recent data indicates that spot BTC ETF flows saw net inflows of $13.4 million last week, a significant shift from the previous week’s outflows of $708 million. Despite this rebound, Bitcoin still remains 17% below its all-time high of nearly $109,000 reached in January.
