Bitcoin Price Surpasses $64,000 with MicroStrategy and Coinbase Stocks on the Rise
Bitcoin surged above $64,000 on Monday, marking its highest level in nearly a month and driving up the share prices of key stocks linked to the cryptocurrency. The leading digital asset saw a 5.7% increase to $64,680, rebounding from recent losses triggered by concerns over Germany’s Bitcoin sales. However, it later dipped back to $64,550.
Factors such as U.S. Federal Reserve rate cuts and evolving political dynamics in Washington are contributing to heightened investor interest in the crypto market, according to Pratik Kala, head of research at DigitalX. He mentioned that a potential win by Trump could potentially boost the crypto market and lead to changes in the leadership of regulatory bodies like the Securities and Exchange Commission.
Furthermore, inflows into U.S. spot Bitcoin exchange-traded funds, post-halving supply shortages, and the upcoming launch of Ethereum spot ETFs are driving increased demand for cryptocurrencies. With Gary Gensler as the SEC Chairman appointed by President Joe Biden, there have been concerns among crypto advocates regarding the regulatory approach taken by the agency.
Amidst this, MicroStrategy’s stock rose by 15.3% to $1,611, its highest level since June 6, while Coinbase saw an 11.4% increase to $242. These traditional stocks associated with the crypto market are considered as proxies for gauging the performance of digital assets and have been moving in tandem with Bitcoin’s trajectory this year.
Additionally, mining stocks experienced an uptick, with Bernstein Research noting a growing acceptance among investors regarding Bitcoin’s role as an energy asset. However, upcoming U.S. retail sales figures could potentially disrupt market sentiment, and the outcome of the election or market perceptions of Trump’s policies could impact crypto prices.
In conclusion, the crypto market is currently showing positive signs, with potential shifts in regulatory leadership and market dynamics influencing investor sentiment and driving demand for digital assets.
