What’s Driving Bitcoin to $36k, Macro Forces or Spot ETF Hype?

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Michael Saylor, Referring to Bitcoin
  • QCP Capital challenges the common view that Bitcoin’s rally is due to ETF hype.
  • QCP Capital emphasizes the role of Treasury supply estimates and a dovish FOMC in driving Bitcoin’s rally.
  • Tom Lee highlights institutional investments and renewed interest from Asian markets.

QCP Capital, a prominent global digital assets trading firm and market maker, has challenged the widespread sentiment in the crypto market regarding Bitcoin’s recent surge above $35k. According to QCP Capital, the primary factor driving the rally is not speculation around the pending spot ETF applications in the United States.

In the market maker’s view, the surge could be correctly attributed to macroeconomic forces rather than developments related to spot ETFs. Furthermore, QCP Capital stressed that the Bitcoin rally gained momentum due to a combination of factors. The firm highlighted a smaller-than-expected Treasury Q1 supply estimate disclosed yesterday and the dovish stance of the U.S. Federal Open Market Committee (FOMC). The digital asset firm claimed the FOMC’s action led to a significant drop in bond yields, subsequently leading to a surge in risk assets like Bitcoin.

Meanwhile, QCP Capital stated that it is uncertain if the rally in the risk asset market signifies the beginning of a new global uptrend in equity and bond markets. The firm noted that the overall macroeconomic landscape remains relatively unchanged, aside from a correction in overly bearish sentiment towards bonds.

On the other hand, some other experts in the crypto industry have shared a similar view regarding Bitcoin’s recent rallies. In a recent interview, Thomas Lee, one of the co-founders of Fundstrat Global Advisors, attributed Bitcoin’s remarkable performance to the significant rise in institutional investments, with CME trading volumes reaching unprecedented heights. 

Additionally, Lee highlighted a revival of interest from Asian markets, which had previously been less involved in the Bitcoin ecosystem. According to him, this resurgence reflects a genuine desire among major investors to enter the cryptocurrency market.

Over the past week, Bitcoin broke above $35k, one of its highest points in 15 months. The digital asset currently trades around $34,300, having briefly touched $36k in the last 24 hours.

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