Bitcoin (BTC) climbed above $63,000 on Monday, marking its highest level in two weeks and surging over 15% from the previous week’s lows.
Bitcoin Momentum Boosted by Election Outlook
Analysts suggest that the recent price momentum is linked to the growing belief that former President Donald Trump, who is increasingly seen as a cryptocurrency advocate, might be re-elected. Trump is set to attend a bitcoin conference in Nashville later this month, according to organizers.
“Bitcoin’s price is positively correlated with the probability of a Trump Presidency and will remain sensitive to election updates,” analysts from brokerage firm Bernstein stated in a report, as reported by The Block. The report also provided optimistic forecasts for bitcoin-mining stocks and their potential diversification into artificial intelligence.
Crypto Stocks Rally
Crypto-related stocks experienced significant gains on Monday. MicroStrategy (MSTR), one of the largest corporate bitcoin investors, saw its shares rise over 16%, while Coinbase (COIN) and miner Marathon Digital (MARA) shares increased by 11% and 18%, respectively.
BlackRock’s Fink Backs Bitcoin
Bitcoin has garnered support from BlackRock (BLK) CEO Larry Fink, who has shifted from being a “proud skeptic” to a “major believer.”
“I’m not trying to say there’s not misuses, like everything else, but it is a legitimate financial instrument that allows you to have non-correlated type of returns,” Fink told CNBC in an interview on Monday. He added that he believes in the role of bitcoin in portfolios.
BlackRock’s spot bitcoin exchange-traded fund, iShares Bitcoin Trust (IBIT), has become one of the most successful products in its category. The fund attracted nearly $4 billion in net inflows in the second quarter and around $18 billion since its inception.
German Selling Abates, ETF Inflows Remain Strong
Cumulative spot bitcoin ETF net inflows reached $15.8 billion on Friday, with products gathering about $1.4 billion in the entire week, offsetting the pressure from German authorities selling seized cryptocurrency.
Germany’s on-chain bitcoin balance is now nearly zero, removing a drag on bitcoin’s price. According to data from Arkham Intelligence, Germany sold 42,000 bitcoin, worth approximately $2.4 billion, in one week.
Bitcoin’s recent surge reflects a combination of political speculation and strong institutional backing, suggesting a robust outlook for the cryptocurrency.
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