Cryptocurrency Price Movements Today: Bitcoin Back Above $63,000

Important points

Bitcoin has surged above $63,000, up more than 15% since last week’s lows.

Former President Donald Trump’s rising chances of winning the election likely added to the momentum in prices.

Meanwhile, BlackRock’s Larry Fink has backed Bitcoin as a “legitimate financial instrument.”

Bitcoin (BTC) rose above $63,000 for the first time in two weeks on Monday, rising more than 15% since last week’s low.

Bitcoin Momentum Seems to Benefit from Election Outlook

Some of this price momentum is likely related to the view that former President Donald Trump, who has recently been seen as a stronger supporter of the cryptocurrency, is more likely to be re-elected. Trump has indicated that he will attend a bitcoin conference in Nashville later this month, according to conference organizers.

“Bitcoin’s price is positively correlated with Trump’s presidential prospects and will remain sensitive to election updates,” analysts at brokerage firm Bernstein wrote in a report, according to The Block. The report also offered optimistic scenarios for bitcoin mining stocks, including their diversification into artificial intelligence.

Crypto-related stocks also gained in trading on Monday. MicroStrategy (MSTR), one of the largest institutional bitcoin investors, saw its shares jump more than 16%, while Coinbase (COIN) and miner Marathon Digital (MARA) stocks rose 11% and 18%, respectively.

BlackRock’s Fink Gets Behind Bitcoin

Bitcoin has found another supporter in BlackRock (BLK) CEO Larry Fink, who has transformed from a self-described “proud skeptic” to a “serious believer.”

“I’m not trying to say that there’s no abuse, as with anything, but this is a legitimate financial instrument that allows you to get uncorrelated returns,” Fink told CNBC in an interview on Monday, adding that he was “one of those who believes there is a role for bitcoin in portfolios.”

BlackRock’s spot bitcoin exchange-traded fund—the iShares Bitcoin Trust (IBIT)—has been one of the most successful products in the category, bringing in about $4 billion in net inflows in the second quarter and generating about $18 billion since it began trading.

German Sell-Off Eases, ETF Inflows Remain Strong

Total spot bitcoin ETF net inflows reached $15.8 billion on Friday. The products have raised about $1.4 billion for the entire week, effectively removing pressure from German authorities to sell the seized cryptocurrencies.

A drag on the price of Bitcoin has also been removed, as Germany’s on-chain bitcoin balance is now close to zero. According to data from Arkham Intelligence, Germany sold 42,000 bitcoins worth around $2.4 billion in a week.

Read the original article on Investopedia.