Bitcoin’s (BTC) impressive 7.6% price increase between April 6 and April 8, reaching an intraday peak of $72,747, has sparked widespread speculation about the underlying causes.

While some may point to inflows from spot Bitcoin exchange-traded funds (ETFs) as the main factor, it’s also very likely that a range of macroeconomic factors or halving anticipation played a major role. Crypto intelligence firm Santiment suggested that increased trader activity has persisted and it remains to be seen whether it will stick after the halving event expected to take place on April 19.

📊 #Bitcoin #ETF volume hasn't slowed down four weeks after the $BTC #AllTimeHigh. Among $GBTC, $IBIT, $FBTC, $ARKB, $BTCO, $BITB, and $HODL, trader activity is still notably higher than the turning point that began in late February after an influx of individual trading began… pic.twitter.com/LErr5T8BWF

— Santiment (@santimentfeed) April 7, 2024

It seems unlikely that Ethena’s purchase of $500 million in Bitcoin for its USDCe stablecoin collateral was the sole driver, given Bitcoin’s large daily spot trading volumes. Rather, investors’ expectations about the economy and cost of capital are likely more significant. Periods of increased liquidity and stimulative monet...