Crypto prices are skyrocketing as the market is showing bullish sentiments. The Bitcoin and the altcoin market are both surging, rebounding months of sluggishness.
As the crypto market rallies, participants are wondering what is causing the surprise rally and how long will it last. According to Arthur Hayes, the co-founder of BitMEX believes that the US Treasury is behind the strong crypto rally.
Why Crypto Prices Are Skyrocketing
Hayes explains that the US Treasury is pondering supplying the market with short-term treasury bills to combat any shortage. Moreover, The crypto prices surged as the macroeconomic conditions improved and became more favorable. The dollar index highlights a slightly weakening greenback currency. In the last 5 days, DXY fell by 1.77%. The crypto market rallied in the same period as well.
Michael van de Poppe, the CEO of Eight Global and a major market expert, also highlights that the US Treasury yields are falling. The dollar’s increasing strength plummeted many other currencies in the global market. The crypto prices also tanked due to the strength of the greenback. There were also concerns about global financial instability.
Secondly, the crypto prices have positively reacted to the turn of events in the UK politico-economic climate. Liz Truss’s budget caused mayhem in the UK economy. Therefore, as she was replaced by the former Chancellor Rishi Sunak, the markets responded positively.
Moreover, Sunak is widely known as a pro-crypto figure in UK politics. The United Kingdom voted in favor of identifying Bitcoin and crypto as legal payment methods. Sunak wants to make the UK the crypto hub of the world. However, certain crypto influencers are criticizing the UK PM for his support of Central Bank Digital Currencies.
What Can Stop The Crypto Rally
The crypto prices will depend on whether the next interest rate decision by the Fed on the 2nd November 2022 is priced in. Several tech companies such as Apple will report their third-quarter earnings. Bad earnings reports can result in a crypto crash.
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