Bitcoin Surges 40% Amid Macroeconomic Uncertainty
Bitcoin's price surge of over 40% since July has left many wondering what's driving this trend. One explanation is the increase in Bitcoin ETF inflows, which have turned positive for the year after a mid-July dip into net outflows.
However, some experts argue that the cause-and-effect order is unclear - are ETF inflows increasing because the price of Bitcoin is going up, or vice versa?
An alternative explanation lies in the 'digital gold' investment thesis, which suggests that investors view Bitcoin as a potential hedge against inflation and geopolitical instability.
But this theory too has its limitations, as Bitcoin's behavior has been inconsistent throughout the year, sometimes acting like a high-beta tech stock and at other times like a safe-haven asset.