Recent Bitcoin interest a result of stock market pessimism?

Robert Burgess, a former global editor in charge of financial markets for Bloomberg, wrote that pessimism surrounding the stock market is probably “spiking Bitcoin fever.” According to the Institute of International Finance (IIF), the total accumulated global debt is worth $243 trillion. Global debt has increased over 50% since the last financial debacle of 10 years ago. 

Burgess believes that this has contributed to the crypto market’s growth. He wrote:

“Those who believe that cryptocurrencies will someday take over the global financial system have been pretty quiet for the last year as prices collapsed. But they were out in full force on Tuesday as the market suddenly spiked. The Bloomberg Galaxy Crypto Index soared as much as 15 percent to its highest level since November. Crypto poster child Bitcoin jumped as much as 23 percent in its biggest gain in more than five years, rising above $5,000 at one point (which is still a long way from the $20,000 or so it reached during the frenzy of late 2017). As if on cue, crypto promoters were predicting even more gains, with one saying Bitcoin will surely reach $7,000 in short order.”

While Burgess admits that nobody knows for sure what is driving the latest crypto bull run, Richardson GMP, a leading Canadian management firms, has suggested the following factors:

• A blockchain conference in Seoul.
• When Bitcoin moved above $4,000, it may have triggered a short covering/squeeze.
• British citizens securing themselves from Brexit fallout by exchanging pounds for Bitcoin.
• An April Fool’s joke on a crypto website which claimed that the SEC has approved Bitcoin ETFs.