Marathon Digital CEO Fred Thiel revealed the source behind the recent Bitcoin (BTC) rally on his TV show.
"The Source of Bitcoin's Rise Escape to the Safe Zone"
Thiel answered the question “What is behind the rise in BTC” after the host of the program, which argues that the $ 400 billion market cap of BTC is dormant and only about $ 180 billion is used in trades, claimed that “the BTC rally was sourced from low liquidity”.
Thiel argued that the source of the rise in Bitcoin price was the “escape to the safe zone”. The CEO said that the BTC price has been tightly correlated with the Nasdaq and S&P in the last few years, and this has changed recently and the correlation to the gold price has increased.
The famous CEO stated that this supports the theory that this is the source of the escape to the safe zone due to the banking crisis in the USA and the rise in the BTC price.
Thiel thinks the rise from $21,000 to the current level is due to the banking crisis in the United States.
In addition, touching on the geographical source of the rise, Thiel pointed out that the rally in price mostly took place during Asian hours. He said that after this, the previous rise was preserved in European hours, and then a partial sale was experienced in American hours.
That's why the buying supporting the rally is due to institutional buyers in Asia, and there are some buyers from Europe, Thiel said.
Thiel said that interest in BTC purchases is high and liquidity is shallow. According to the CEO, available liquidity stands at half the peak times of 2022.
*Not investment advice.
