Around 22:17 UTC on Monday (July 27), on crypto exchange Bitstamp, Bitcoin surged past $11,400 to set an intraday high of $11,404. Less than two hours later, BitMEX CEO Arthur Hayes expressed how bullish he feels about Bitcoin.
Here is what BitMEX Co-Founder and CEO Arthur Hayes tweeted shortly after Bitcoin’s recent rally took it past the psychologically important $10,000 level:
And then earlier today, after Bitcoin broke through the $11,400 resistance level, Hayes used the famous catchphrase of the character “Mr. T” (from the 1980s American TV series “The A Team”) to explain what he thinks about those people who are still not long Bitcoin:
Currently (as of 09:38 UTC on July 28), according to CryptoCompare, Bitcoin is trading at $11,808, up 6.15% in the past 24-hour period:
So, what are the tailwinds that have helped Bitcoin to rally from an intraday high of $9,588 last Friday (July 24) to an intraday high of $11,404 today?
Well, we can’t be certain, of course, but here are some plausible explanations:
- The worsening COVID-19 situation in the U.S.
- Escalating tensions between the U.S. and China as the result of trade disputes, China’s handling of the COVID-19 pandemic back in January/February, and China’s stance towards Hong Kong.
- Negative “real” yield on the U.S. 10 Year Treasury Note.
- Weakening of the U.S. dollar.
- “Fear of Missing Out” (FOMO) purchases by those people/institutions that were sitting on the sidelines hoping to buy some cheap Bitcoin.
- Short squeezes on crypto derivatives exchanges such as BitMEX.
One prominent crypto analyst/trader told his 216K+ followers yesterday:
Another popular crypto analyst/trader Josh Rager, who is also a Co-Founder of online crypto learning platform Blockroots, as well as an advisor to several blockchain startups, feels confident that Bitcoin’s current rally could take it all the way to a new all-time high: