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Arthur Hayes predicts macro strengthening as sovereign debt bubble approaches, fueling Bitcoin’s rise

Hayes suggests that Bitcoin could play the role of “digital gold,” providing an alternative form of investment in the face of a potential financial crisis.

Date: 2024-04-24 Author: Marek Stiller
Arthur Hayes predicts macro strengthening as sovereign debt bubble approaches, fueling Bitcoin’s rise

Renowned entrepreneur Arthur Hayes shared his insights on the macroeconomic landscape, predicting a strengthening trend that could further accelerate Bitcoin’s growth.

In a recent blog post, Hayes highlighted the growing threat of a sovereign debt bubble on the horizon, which could intensify the macro configuration favoring cryptocurrencies.

Hayes said there is a narrative gaining traction in both retail and institutional investor circles, indicating that major economic blocs such as the US, China, the European Union (EU) and Japan are depreciating their currencies in order to deleverage the balance of their governments.

This narrative has sparked interest in cryptocurrency derivative products, such as U.S. Bitcoin ETFs, as traditional finance seeks to protect wealth from the erosion of fiat currencies.

The market will continue its upward trajectory

As bitcoin experienced a period of weakness due to the April 15 U.S. tax payment and bitcoin halving, Hayes said the market will continue its upward trajectory, driving prices higher. He stressed that in markets, the strategies and factors that led to past successes are often different from those that will drive future gains.

However, he noted that the macro configuration responsible for the increase in fiat liquidity, which has fueled Bitcoin’s remarkable growth, will be even more pronounced as the sovereign debt bubble approaches its bursting point.

As the global financial landscape evolves, Hayes urged caution against premature profit taking and encouraged investors to take advantage of current market dynamics. He advocated the “left curve,” a mindset focused on seizing opportunities and gaining winning positions.

He added that he expects the bull market to continue and Bitcoin’s potential to reach even higher price levels, well beyond its current position.

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Bitcoin stagnates as ETF inflows slow down

Bitcoin’s price is currently holding in the $66,000 range due to a slowdown in ETF inflows. According to SoSoValue , the total net inflow of Bitcoin ETFs yesterday, April 23, was $31.6354 million.

Grayscale ETF GBTC recorded a one-day net outflow of $66.8838 million. BlackRock ETF IBIT ‘s one-day net inflow was $37.9233 million, and IBIT‘s current total historical net inflow reached $15.479 billion.

As we reported, investment products in digital assets faced another week of outflows, marking the second consecutive week of declining investor interest. Outflows totaled $206 million, while trading volume in exchange-traded products (ETPs) saw a slight decline.

Bitcoin investment products saw $192 million in outflows. However, few investors saw this as a short-selling opportunity, and Bitcoin short-selling strategies recorded an outflow of $0.3 million.

Negative sentiment around investment products in digital assets was seen primarily in U.S. ETFs, with outflows of $244 million.

The outflows were mainly focused on existing ETFs, while capital continued to flow into newly issued ETFs, albeit at lower levels compared to previous weeks.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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