News
Bitcoin Stops at $57K Despite Lower Inflation
Key points
- Bitcoin price briefly rose above $59,000 as US consumer price index (CPI) data was released this morning.
- Lower-than-expected inflation data strengthens the possibility of a rate cut by the Federal Reserve, which could benefit riskier assets like cryptocurrencies.
- Germany continues to sell bitcoin today, as it holds less than 10,000 of the 50,000 it originally held on the Bitcoin blockchain.
- Spot bitcoin ETFs continued their positive week on Wednesday, posting another $147.4 million in inflows.
- MicroStrategy is up more than 3% following news that it will undergo a 10-for-1 stock split.
Bitcoin (BTC) prices rose briefly after a cooler-than-expected June inflation data but failed to cross the $60,000 mark.
This weaker inflation strengthens the possibility of an interest rate cut by the United States. Federal Reservewhich bodes well for cryptocurrencies, including bitcoin. The Fed has raised rates to a 23-year high to combat rampant inflation, but that has pushed up Treasury yields, making them a more attractive investment than riskier assets like cryptocurrencies.
The price of Bitcoin, which has been under pressure recently, briefly rose above $59,000 following the report, but is now trading above $57,000.
Demand and selling pressure cancel each other out
Just like in recent days, demand is coming from inflows into spot bitcoin exchange-traded funds (ETFs)) and the selling pressure from the German government’s bitcoin sales are canceling each other out, effectively capping the price of bitcoin.
German authorities now hold less than a fifth of the 50,000 bitcoins seized from an online piracy website and have already sent $328.89 million worth of bitcoins to various exchanges and other addresses today.
Spot bitcoin ETFs continued their positive week Wednesday, with $147.4 million in inflows, according to Farside Investors. That brings total inflows this week into spot bitcoin ETFs to $658.6 million.
MicroStrategy Splits Stock
Microstrategy (MSTR) shares rose more than 3% in intraday trading on Thursday, after the company announced a 10 for 1 stock splitAfter the market closes on August 7, MicroStrategy shareholders will receive nine additional shares for every share they own in the company.
This move by MicroStrategy will not only increase the number of shares available for trading, but it will also help make each share more accessible to investors. MicroStrategy shares, which have more than doubled year-to-date, are priced at over $1,300 each.
As a large corporate holder of bitcoin, MicroStrategy has benefited from the bitcoin price rally this year after the approval of spot bitcoin ETFs. As of April 26, the company held 214,400 bitcoins.