News
Bitcoin Stagnates at $57K Despite Cooler Inflation
Main conclusions
- Bitcoin’s price briefly surged above $59,000 around the time of the release of US CPI data this morning.
- Cooler-than-expected inflation data reinforces the possibility of a rate cut by the Federal Reserve, which could benefit riskier assets such as cryptocurrencies.
- Germany is still selling bitcoins today as it now holds less than 10,000 of the 50,000 it originally held on the Bitcoin blockchain.
- Spot bitcoin ETFs continued their strong week on Wednesday, recording another $147.4 million in inflows.
- MicroStrategy rose more than 3% after 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 break the $60,000 mark.
This impression of softer inflation reinforces the possibility of a US interest rate cut Federal Reservewhich bodes well for cryptocurrencies, including bitcoin. The Fed raised rates to a 23-year high to combat runaway inflation, but that has pushed up Treasury yields, making them a more attractive investment than riskier assets like cryptocurrencies.
Bitcoin’s price, which has been under pressure recently, briefly rose above $59,000 following the report but is now trading above $57,000.
Demand and selling pressures cancel out
As in recent days, the demand for spot bitcoin entries exchange-traded funds (ETFs)) and the selling pressure from the German government’s bitcoin sales are canceling each other out, effectively paralyzing the price of bitcoin.
German authorities now hold less than a fifth of the 50,000 bitcoins seized from an online piracy site and have already sent $328.89 million worth of bitcoins to various exchanges and other addresses today.
Bitcoin spot ETFs continued their strong week on Wednesday, enjoying $147.4 million in inflows, according to Farside Investors. This brings this week’s total inflows into bitcoin spot ETFs to $658.6 million.
MicroStrategy Splits Shares
MicroStrategy (MSTR) shares rose more than 3% in intraday trading Thursday after the company announced a 10-for-1 stock split. After the markets close on August 7, MicroStrategy shareholders will receive nine additional shares for each 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 affordable for investors to buy. MicroStrategy shares, which have more than doubled year-to-date, are trading at more than $1,300 a share.
As a major corporate holder of bitcoin, MicroStrategy has benefited from the rally in bitcoin prices this year following the approval of spot bitcoin ETFs. As of April 26, the company held 214,400 bitcoins.