Commentary - What is driving the latest Bitcoin and crypto rally?

The Future of Money

What is driving the latest Bitcoin and crypto rally? Here are a couple of thoughts:

• Clarity around Binance: settlement with US authorities well received and the “Binance risk” significantly reduced which was a major looking uncertainty for many institutional investors
• Closure on FTX: SBF heading to prison and FTX claims reportedly selling for over 60 cents on the dollar with overall recovery looking close to 90 cents
• Expectation that interest rates will fall in Q1 2024: thus sending capital into “risk on” assets
• Upcoming physical Bitcoin ETF approval: many investors trying to get exposure before expected inflows following the ETF approval that could be weeks away
• Bitcoin halving coming in May 2024: which will cut in half the rate of new Bitcoin issued every 10 minutes.
• Ease of entering crypto ecosystem globally: many regulated players now offering easy on/off ramps which makes it easier for retail investors to enter the space
• Rise of stable coins globall: not only from the public in countries from Argentina to Turkey but also international trade. Once assets are in stable coins, they are rarely going back to fiat and makes it much much easier to buy other digital assets.