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Opinion

How Real Is Bitcoin’s Rally? 8 Interpretations of Bitcoin's Massive Surge

As bitcoin retraces slightly after reaching a new 2020 high about $11,000, NLW explores what’s driving the rally and how likely it is to continue.

By Nathaniel Whittemore
AccessTimeIconJul 28, 2020 at 7:00 p.m. UTC
Updated Sep 14, 2021 at 9:37 a.m. UTC
AccessTimeIconJul 28, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:37 a.m. UTC
(Overearth/Shutterstock)
(Overearth/Shutterstock)
AccessTimeIconJul 28, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:37 a.m. UTC

As bitcoin retraces slightly after reaching a new 2020 high about $11,000, NLW explores what’s driving the BTC rally and how likely it is to continue.

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This episode is sponsored by Bitstamp and Crypto.com.

It was a beautiful Monday. 

Bitcoin crashed through $10,000 and got all the way up to a new yearly high of about $11,000 before retracing slightly.

See also: Bitcoin Futures Volume Surges 186% as Price Hits $11K

As with any dramatic price action, people were quick to start giving their interpretations of why it happened. 

Eight ways to understand bitcoin's massive surge

  • Banks stacking due to changes in custody rules
  • Money printer go brrr
  • Stock to flow model
  • Robinhood traders piling in
  • DeFi gain recycling 
  • Buyers exceeding sellers
  • “Perfect storm”
  • Dollar crash, negative real interest rates and the search for a new reserve currency

Ultimately, NLW argues that it is this last factor driving up not only bitcoin but gold and silver.

See also: No, the Twitter Hack Wasn’t About Bitcoin

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