BitMEX co-founder Arthur Hayes shared the reasons behind Bitcoin’s (BTC) uptrend year-to-date.
According to him, FUD seems to be what is driving the current bull run.
Since the beginning of the year, Bitcoin has recorded a 71% increase, reaching a high of $28,803.34 in the past 90 days.
$bitcoin 2023-? FUD driven bull market. pic.twitter.com/wQuf3ny2vp
— Arthur Hayes (@CryptoHayes) March 29, 2023
The digital currency ecosystem has been through a lot of serious turmoil so far this year, with Digital Currency Group (DCG) and its subsidiary Genesis Global being heavily impacted by the FTX debacle.
Genesis eventually filed for bankruptcy amid concerns that the parent company would dump thousands of bitcoins associated with Grayscale, a trend that could lead to a sharp drop in bitcoin prices.
Surprisingly, the digital currency has survived this shock and its price has remained stable.
This year also saw the collapse of two major banks powering the crypto ecosystem, including Silvergate Bank and Signature Bank. The demise of these entities further reinforces the need to embrace digital security assets that are independent of the current monetary policies of cryptocurrency holders.
Bitcoin is trading at $28,352, up 5.36% in the past 24 hours, following a recent rally by the US Commodity Futures Trading Commission (CFTC) on Binance.
Source: TradingView
While the civil lawsuit against the exchange has drained some $2 billion in funds, Bitcoin’s response has shown that the asset’s future has nothing to do with any entity other than the technology that underpins the industry.
Bitcoin is aiming to break the $30,000 resistance and FUD could help trigger this new high.
Bitcoin can continue to rise
CryptoQuant data suggests that Bitcoin may continue its upward momentum.
Specifically, the chart below shows Bitcoin price in orange and net taker volume in blue. Net Taker Volume indicates the aggressiveness of buyers and sellers in the market. It is calculated by finding the difference between the Taker’s buy volume and sell volume. A positive value of Net Taker Volume indicates the buying power of Bitcoin, while a negative value indicates selling pressure.
Source: CryptoQuant
The chart shows a positive near-term outlook for Bitcoin. The data shows that Net Taker Volume is about to cross the zero line, that is, above the 30-day moving average, and the volume of Taker buy orders is higher than the volume of Taker sell orders. This shows that the purchasing power of Bitcoin is increasing.
Additionally, the data shows that Net Taker Volume has crossed the zero line four times in the past year, and in all four of those times, it has shown positive results. This is a promising sign for traders and investors looking to buy or hold bitcoin.
The news caused a stir in the crypto community, with many enthusiasts using social media to discuss the implications of the data. The upside potential has reignited interest in Bitcoin, with many traders already acting to take advantage of the expected price rise.
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according to Kyptos
