Earlier this week, the price of Bitcoin (BTC) surpassed $35,000, reaching a level not seen in 17 years. Experts believe that the rally was driven by the anticipation of the Securities and Exchange Commission (SEC) approving a Bitcoin Exchange-Traded Fund (ETF) in the near future. However, BitMEX exchange Co-Founder Arthur Hayes has a different perspective. In a recent essay, Hayes argued that the surge in BTC price is actually influenced by the US military. He believes that the US government’s foreign policy, which involves significant expenses, is impacting the economy and the markets, including cryptocurrency prices. Hayes specifically points to President Joe Biden’s commitment to supporting Israel’s war effort against Hamas as a catalyst for the rally. He suggests that the market is discounting the future cost of assumed military support to Israel and other allies. Hayes also highlights the expanding US military budget and increased government borrowing as factors that could lead to significant capital expenditure in the future. Institutional investors have already started divesting from bonds and treasury bills in anticipation of higher US military spending, seeking returns in alternative asset classes. With concerns about wartime inflation, gold and Bitcoin are gaining attention as safer alternatives to long-term US Treasury bonds.

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Information	Details
Geography	Middle East
Countries	🇮🇱 🇺🇦 🇦🇫
Sentiment	positive
Relevance Score	1
People	Arthur Hayes
Companies	Securities and Exchange Commission (SEC), BitMEX exchange, Pentagon, US Treasury market, US Government
Currencies	Bitcoin, Gold
Securities	None