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2/ First. This may be the first time in history that the price of Bitcoin is directly reacting to macroeconomic events over the course of several months.
3/ The beginning of the rally coincided with the devaluation of the yuan that was induced by US-China trade war fears.
4/ The Tether supply has been expanding. Multiple sources suggest that buyers in China have been using Tether as an OTC on-ramp to Bitcoin.
5/ In the grand scheme of things, Bitcoin’s liquidity is still tiny, and there doesn’t need to be a lot of buyers in China to push the market up by 400% within a few months.
6/ Second, the Federal Reserve has made it increasingly clear in recent months that they are going to pursue expansionary monetary policies.
7/ The liquidity injection from central banks pushes the price of Bitcoin higher.
8/ The fact that the Bitcoin has been outperforming other cryptoassets supports this theory. Bitcoin is really the only hedge against inflationary macro environments.
9/ Third, Libra draws mainstream attention and helps legitimize the space.
10/ Anecdotally, last week we received far more inbound interest from engineering candidates outside our industry. Many cited "Facebook's crypto project" as the primary catalyst.
11/ Last but not least, this rally may simply be a technical one.
12/ Sellers have capitulated. So even a small level of buying pressure can have a big impact on the price.
13/ By the way, while this tweet was being drafted, the market cap moved by $50B, which equals the entire marketcap two years ago. Crazy how far we've come.
