Cryptocurrency Price Movements Today: Bitcoin Briefly Tops $71K

Julie Bang / Investopedia

Important points

Bitcoin briefly rose above $71,000 on Monday morning.

Former US President Donald Trump announced that he will create a strategic Bitcoin stockpile.

US Republican Senator Cynthia Lummis has announced a bill that would create a strategic Bitcoin reserve of approximately 5% of the total Bitcoin supply.

Twenty-eight Democrats have signed a letter proposing that the party take a “forward-looking approach” to crypto.

The Kamala Harris campaign has reportedly reached out to the cryptocurrency industry in an attempt to reset relations.

Spot ether ETFs closed their first week of trading with net outflows of $341.8 million.

Bitcoin (BTC) briefly rose above $71,000 on Monday morning, riding high on optimism from the Bitcoin 2024 conference held in Nashville over the weekend, but then reversed direction, falling 2% to around $67,000 as of 2 p.m. ET.

Bitcoin Reserve Talks Initially Support Price

Speaking at the Bitcoin 2024 conference, former US President Donald Trump said that if he returns to the White House, his administration will not sell any Bitcoin that the US government currently holds or acquires in the future, thus creating a “strategic national Bitcoin stockpile.”

The U.S. government holds Bitcoin and crypto assets, which are often seized as part of enforcement actions.

Wyoming Republican US Senator Cynthia Lummis also went a step further, announcing a bill that aims to add to these strategic stocks with purchases equivalent to 5% of the total Bitcoin supply over a certain number of years.

Independent presidential candidate Robert F. Kennedy Jr. also spoke at Bitcoin 2024, announcing a similar plan to Lummis. He said that if elected, he would transfer more than 200,000 bitcoins held by the U.S. government to the Treasury as a “strategic asset” through executive orders and instruct the Treasury to purchase 550 bitcoins every day until the reserves reached 4 million bitcoins.

Trump also said he would replace Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC). Gensler has been heavily criticized for the SEC’s enforcement actions against the cryptocurrency industry.

Crypto’s Influence on US Elections Grows

Cryptocurrencies are becoming an increasingly talked about topic during the US Presidential elections.

According to Politico, 28 Democratic lawmakers and candidates sent a letter to the party’s national committee chairman demanding a reversal of the party’s stance on bitcoin and cryptocurrencies.

“From an electoral perspective, crypto and blockchain technologies have a major impact in securing victory at every stage of the ballot box,” the letter said.

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Additionally, the Kamala Harris campaign has reached out to several crypto companies to re-establish ties with the industry, according to the Financial Times. The Harris campaign, like other candidates, has faced criticism from the crypto community after declining an invitation to speak at the Bitcoin 2024 conference this weekend.

Ether ETF Hype Fades Amid Expansions

Spot ether (ETH) exchange-traded funds (ETFs) finished their first week of trading with net outflows of $341.8 million, according to Farside Investors.

Grayscale Ethereum Trust (ETHE) has seen just over $1.5 billion in outflows since it went live last week, as owners of the pre-existing fund moved to cheaper ETFs or simply sold their holdings. BlackRock’s iShares Ethereum Trust (ETHA) has been the winner of the spot ether ETF race so far, with $442 million in inflows.

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