BitMEX co-founder and former chief executive officer Arthur Hayes has shared a recent revelation that explains why Bitcoin (BTC) has recorded the uptrend it has recorded thus far this year. According to the veteran crypto trader, Fear, Uncertainty and Doubt (FUD) appears to be what is powering the current bull market.
$BTC 2023-? Bull market powered by FUD. pic.twitter.com/wQuf3ny2vp— Arthur Hayes (@CryptoHayes) March 29, 2023
Since the start of the year, Bitcoin has recorded 71% growth, attaining a high of $28,803.34 in the past 90 days. The digital currency ecosystem has witnessed a lot of intense uncertainty thus far this year, with 2023 opening up with Digital Currency Group (DCG) and its subsidiary, Genesis Global, bleeding from the aftermath of the collapse of the FTX Derivatives Exchange.
Genesis eventually filed for bankruptcy amid fear that the parent company would sell off thousands of Bitcoin tied to Grayscale, a trend that could have stirred a massive slump in the price of Bitcoin. Surprisingly, the digital currency survived this onslaught, and its price remained resilient.
This year has also seen the collapse of two major banks powering the ecosystem, including Silvergate and Signature Banks, respectively. The fall of these entities only helped reiterate the need for crypto owners to embrace a digital asset whose security is not tied to current monetary policies.
Unending FUD with Binance
Bitcoin is trading at a price of $28,341.07, up by 5.36% over the past 24 hours, a new growth round that comes after the recent crackdown on Binance by the Commodity Futures Trading Commission (CFTC).
Though the civil lawsuit filed against the exchange has fueled the withdrawal of about $2 billion from the trading platform, Bitcoin's reaction has shown that the future of the asset is not tied to any entity beyond the core technology underpinning the industry.
Bitcoin is eyeing a breach of the $30,000 resistance level, and the FUD may help trigger this new high.