Bitcoin
Bitcoin Surges Above $64,000 as MicroStrategy, Coinbase Proxy Stocks Surge
Bitcoin surged above $64,000 for the first time in nearly a month on Monday, sending the price of major stocks associated with the asset soaring as traders weighed trend changes.
The world’s largest cryptocurrency by market cap rose 5.7% to $64,680, reversing losses suffered late last month on fears of from Germany Bitcoin Sales, CoinGecko data show.
The asset has since fallen to $64,550 at the time of writing.
Rate cuts from the US Federal Reserve and an evolving political landscape in Washington are helping fuel investor interest in cryptocurrencies, Pratik Kala, head of research at DigitalX, told Decrypt.
“If Trump wins, it could boost the cryptocurrency market and increase the likelihood of new leadership at the Securities and Exchange Commission,” Kala said.
Appetizer to the US location Bitcoin Exchange-Traded Funds, Post-Halving Supply Shortages, and the Launch of Ethereum Spot ETFs next week are also increasing demand, Kala said.
SEC Chairman Gary Gensler, appointed by President Joe Biden, has come under fire for his approach to policing the industry in what crypto advocates say is a regime of regulation through litigation.
A changing of the guard at the country’s top regulator could lead to more regulations for cryptocurrencies and the introduction of new investment options, including a Solana exchange-traded fund, Kala said.
Tracking the crypto rally, MicroStrategy’s share price rose 15.3% to $1,611 on Monday, its highest point since June 6, while Coinbase rose 11.4% to $242.
Considered by analysts to be proxies for the performance of cryptocurrencies, traditional stocks associated with the asset class have loosely tracked Bitcoins go up this year.
As a result, mining stocks also saw a surge on Monday, with Bernstein Research claiming that investors are becoming more receptive to the changing perceptions surrounding Bitcoin as an energized energy asset.
While interest in cryptocurrency-linked stocks has been high, surprises from upcoming U.S. retail sales figures on Thursday could derail market sentiment.
If Trump also loses the election or if the market believes his policies will cause more inflation and high interest rates, cryptocurrency prices could reverse, Kala added.
“Otherwise, Bitcoin looks like a good setup right now.”