Key Takeaways
- Bitcoin has surged past $63,000, marking an increase of over 15% from its recent low last week.
- The potential electoral success of former President Donald Trump might have contributed to this price surge.
- Additionally, Larry Fink from BlackRock has recognized Bit as a “legitimate financial instrument.”
Bitcoin (BTC) climbed above $63,000 on Monday, marking its first time reaching this level in two weeks and representing an increase of over 15% from last week’s lows.
Bitcoin Momentum Boosted by Election Projections
The recent price momentum is likely tied to the increasing possibility of former President Donald Trump’s re-election, as he is now seen as a stronger advocate for cryptocurrency. According to conference organizers, Trump has confirmed his attendance at a (BTC) conference in Nashville later this month.
According to a report from brokerage firm Bernstein, (BTC) price is closely linked to the likelihood of a Trump Presidency. It will remain susceptible to election developments, as reported by The Block. The report also presented optimistic projections for (BTC)-mining stocks, highlighting their potential diversification into artificial intelligence.
Crypto-related stocks experienced gains in trading on Monday. MicroStrategy (MSTR), a major corporate (BTC) investor, saw its shares increase by over 16%. Meanwhile, Coinbase (COIN) shares rose by 11%, and Marathon Digital (MARA), a bitcoin mining company, saw an 18% jump in its shares.
BlackRock’s Fink Gets Behind Bitcoin
(BTC) has gained a new advocate in BlackRock (BLK) CEO Larry Fink, who has transitioned from being a self-described “proud sceptic” to a “major believer.”
I’m not denying there are misuses, just like with anything else, but it is a legitimate financial instrument that offers non-correlated returns,” Fink said in an interview with CNBC on Monday. He added, “I firmly believe there is a place for (BTC) in investment portfolios.
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BlackRock’s spot bitcoin exchange-traded fund, the iShares (BTC) Trust (IBIT), has become one of the most successful products in its category. The fund attracted nearly $4 billion in net inflows during the second quarter and has accumulated approximately $18 billion since its inception.
German Selling Abates, ETF Inflows Remain Strong
On Friday, cumulative net inflows into spot bitcoin ETFs reached $15.8 billion. These products attracted approximately $1.4 billion over the entire week, countering the impact of German authorities selling cryptocurrency they had seized.
A factor weighing on the price of (BTC) has been alleviated, with Germany’s on-chain bitcoin balance now approaching zero. According to Arkham Intelligence, Germany sold 42,000 bitcoins valued at approximately $2.4 billion over one week.