Bitcoin
Cryptocurrency Price Movements Today: Bitcoin Back Above $63,000
Main conclusions
- Bitcoin is back above $63,000, up more than 15% from last week’s low.
- The increased chances of former President Donald Trump’s election victory likely fueled some momentum in prices.
- Meanwhile, BlackRock’s Larry Fink has endorsed bitcoin as a “legitimate financial instrument.”
Bitcoin (BTC) climbed back above $63,000 for the first time in two weeks on Monday, up more than 15% from last week’s lows.
Bitcoin momentum seen as helped by election outlook
Some of this price momentum is likely tied to the view that the reelection of former President Donald Trump, who has been seen as a strong supporter of cryptocurrency lately, is more likely. Trump has indicated that he will attend a bitcoin conference in Nashville later this month, according to conference organizers.
“Bitcoin price is positively correlated with the likelihood of a Trump presidency and will remain sensitive to election updates,” analysts at brokerage Bernstein said in a report, according to The Block. The report also offered bullish scenarios for bitcoin mining stocks, including their diversification into artificial intelligence.
Cryptocurrency-related stocks also saw gains in Monday trading. MicroStrategy (MSTR), one of the largest corporate investors in bitcoin, saw its shares rise more than 16%, while Coinbase (COIN) and Marathon Digital miner (MARA) shares rose 11% and 18%, respectively.
BlackRock’s Fink Endorses Bitcoin
Bitcoin has found another supporter in BlackRock (Black) CEO Larry Fink, who went from being a self-proclaimed “proud skeptic” to a “big believer.”
“I’m not trying to say there aren’t misuses, like everything else, but it’s a legitimate financial instrument that allows you to have uncorrelated returns,” Fink told CNBC in an interview Monday, adding that he “strongly believes there is a role for bitcoin in portfolios.”
BlackRock Spot Bitcoin Exchange Traded Fund — iShares Bitcoin Trust (I BITE)—has been one of the most successful products in the category. The fund secured nearly $4 billion in net inflows in the second quarter, and approximately $18 billion since it began trading.
German sales ease, ETF inflows remain strong
Cumulative net inflows into spot bitcoin ETFs hit $15.8 billion on Friday. The products raked in about $1.4 billion for the entire week, effectively canceling out pressure from German authorities by selling cryptocurrencies they had seized.
A drag on bitcoin’s price has also been removed, as Germany’s on-chain bitcoin balance is now nearly zero. Based on data from Arkham Intelligence, Germany sold 42,000 bitcoins, worth around $2.4 billion, in one week.