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Cryptocurrency Price Movements Today: Bitcoin Back Above $63,000
Key points
- Bitcoin is back above $63,000, up more than 15% from last week’s low.
- The increased odds of an election victory for former President Donald Trump have likely fueled some momentum in prices.
- Meanwhile, BlackRock’s Larry Fink has endorsed Bitcoin as a “legitimate financial instrument.”
Bitcoin (BTC) returned above $63,000 for the first time in two weeks on Monday, up more than 15% from last week’s lows.
Bitcoin’s momentum was boosted by election prospects
Part of this price momentum is likely associated with the view that the re-election of former President Donald Trump, who has recently been seen as a strong cryptocurrency advocate, 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 firm Bernstein said in a report, according to The Block. The report also offered optimistic scenarios for bitcoin-mining stocks, including their diversification into artificial intelligence.
Cryptocurrency-related stocks also posted gains in Monday’s trading. MicroStrategy (MSTR), one of the largest corporate investors in bitcoin, saw its shares rise more than 16% as Coinbase (CURRENCY) and the Marathon Digital miner (MARA) shares rose 11% and 18%, respectively.
BlackRock’s Fink Backs Bitcoin
Bitcoin has found another supporter in BlackRock (BLACK) CEO Larry Fink, who has gone from a self-proclaimed “proud skeptic” to a “big believer.”
“I’m not trying to say there’s no abuse, 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’s “a big believer in bitcoin’s place in wallets.”
BlackRock’s Spot Bitcoin Exchange-Traded Fund: iShares Bitcoin Trust (IBITS)—has been one of the most successful products in the category. The fund received nearly $4 billion in net inflows in the second quarter and about $18 billion since it began trading.
German sell-offs ease, ETF inflows remain strong
Cumulative net inflows into spot bitcoin ETFs hit $15.8 billion on Friday. The products have raised about $1.4 billion for the full week, effectively reversing pressure from German authorities selling seized cryptocurrencies.
A drag on bitcoin’s price has also been removed, as Germany’s on-chain bitcoin balance is now around zero. According to Arkham Intelligence data, Germany sold 42,000 bitcoins, worth around $2.4 billion, in a week.