Bitcoin
Cryptocurrency Price Movements Today: Bitcoin Briefly Surpasses $71K
Main conclusions
- Bitcoin briefly surged above $71,000 on Monday morning.
- Former US President Donald Trump announced that he would create a strategic stockpile of bitcoins.
- US Republican Senator Cynthia Lummis has announced a bill that would establish a strategic bitcoin reserve of approximately 5% of the total bitcoin supply.
- Twenty-eight Democrats have signed a letter recommending that the party take a “forward-looking approach” to cryptocurrencies.
- Kamala Harris’ campaign has reportedly reached out to the cryptocurrency industry in an effort to mend relations.
- Spot ether ETFs ended their first week of trading with $341.8 million in net outflows.
Bitcoin (BTC) briefly surpassed $71,000 on Monday morning, buoyed by optimism from the Bitcoin 2024 conference in Nashville over the weekend, before reversing course and falling 2% to around $67,000 by 2 p.m. ET.
Bitcoin reserve talk initially supports price
Speaking at the Bitcoin 2024 conference, former US President Donald Trump said that if he returns to the White House, his administration will not sell any bitcoin that the US government currently holds, or acquires in the future, effectively creating a “strategic national stockpile of bitcoin.”
The US government holds bitcoin and crypto assets that are often seized as part of enforcement actions.
Additionally, Republican U.S. Senator Cynthia Lummis of Wyoming announced a bill that would go a step further and increase this strategic stockpile with purchases equivalent to 5% of the total bitcoin supply over a set number of years.
Independent presidential candidate Robert F. Kennedy Jr. also spoke at Bitcoin 2024, where he announced a plan similar to Lummis’. He said that if elected, he would transfer the more than 200,000 bitcoins held by the U.S. government to the Treasury as a “strategic asset” through executive orders and direct the Treasury to buy 550 bitcoins every day until the reserve grows to 4 million bitcoins.
Trump also said he would replace the US president Securities and Exchange Commission (SEC)) President Gary Gensler. Gensler has been strongly criticized for the SEC’s enforcement actions against the cryptocurrency industry.
The Growing Influence of Cryptocurrency in the US Elections
Cryptocurrencies are becoming an increasingly hot topic of conversation surrounding the US presidential election.
Twenty-eight Democratic lawmakers and candidates have sent a letter to the party’s national committee chairman requesting a reversal of the party’s stance on bitcoin and cryptocurrencies, Politico reported.
“From an electoral perspective, cryptocurrency and blockchain technologies have an outsized impact on ensuring victories on every ballot,” the letter said.
Additionally, Kamala Harris’ campaign has reached out to a variety of cryptocurrency companies in an effort to reset relations with the industry, according to the Financial Times. Harris’ campaign has come under fire from the cryptocurrency community after declining an invitation to speak at the Bitcoin 2024 conference last weekend, like the other candidates.
Ether ETF hype fades amid capital outflows
Spot Ether (ETH) exchange-traded funds (ETFs)) ended their first week of trading with $341.8 million in net outflows, according to Farside Investors.
The Grayscale Ethereum Fund (IT IS) has seen just over $1.5 billion in outflows since it went live last week as holders of the preexisting fund either switch to cheaper ETFs or simply sell their holdings. BlackRock’s iShares Ethereum Trust (ETA) has been the winner of the spot ether ETF race so far, with $442 million in inflows.