News - Is the Bitcoin price rally due to war instead of the Blackrock ETF?
14 percent rose in the price of Bitcoin. Is BlackRock's BTC spot ETF behind it? According to Arthur Hayes, there is another cause.
Bitcoin rises 14 percent, one guess: BlackRock's Bitcoin Spot ETF is waiting in the wings. That was the big news of the week. Or is it a misinterpretation? According to blockchain pioneer Arthur Hayes (known for BitMex, among other things), there is another reason for Bitcoin's strong rally: the wars in Israel and Ukraine. He explains this in an essay published Oct. 24 on his Substack.
US President Joe Biden gave a speech the same day explaining: a lot of new money will be available to fund military support. "Combined with the cost of Ukraine, the U.S. military budget will really explode," Hayes said. "That will increase future government borrowing. And the sky is the limit when it comes to the amounts of capital a war can waste."
Hayes concludes: institutional investors are selling government bonds and notes and shifting money to safer assets. In particular, gold and Bitcoin. "If long-term U.S. government bonds do not offer investors security, they will look for alternatives," Hayes said. "Gold and especially Bitcoin will rise out of real fear of wartime global inflation."
In reality, the price rally was attributed to a different event: There was growing evidence of a Bitcoin ETF from BlackRock. A ticker symbol for the ETF appeared on Nasdaq. Then it disappeared again. Now it came out: the symbol had been listed since August.