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Bitcoin rallies to above $24,000 on Monday.
Dreamstime
Bitcoin
climbed above $24,000 on Monday, rising in tandem with the stock market and elevating stocks with high exposure to cryptocurrency.
The price of Bitcoin has jumped nearly 5% over the past 24 hours to $24,220.36, climbing to its recent high of $24,504 toward the end of July. The world’s largest cryptocurrency has regained 12.3% over the course of the last month, looking to claw back some of its losses since falling under $20,000 in June for the first time since 2020.
The rally was spurred by investor optimism that inflation may soon be easing, with July’s consumer price index data expected to tick down to 8.7% from 9.1% in June, according to FactSet.
“The Bitcoin market seems to be in the process of pricing in the potential drop in CPI and trading a little higher in the Asia session on Monday,” wrote Bitbank analyst Yuya Hasegawa. “Lower inflation data will likely force the market to reconsider a 75 basis point-rate-hike outlook in September and will likely push the price of Bitcoin higher.”
Crypto stocks were also getting a much-needed boost on Monday.
Coinbase Global
(ticker:
COIN
) was advancing 8.7% in premarket trading, while cryptocurrency miners
MARA
) and
RIOT
) were gaining 8.6% and 7.3%, respectively. All three stocks have lost upward of 55% this year as crypto prices tumbled.
MSTR
) was on track to open 7.4% higher just a week since CEO Michael Saylor would step down from his role after the company reported a loss of $918 million attributed to Bitcoin’s falling prices. The software company held close to 130,000 Bitcoin after Saylor announced in 2020 the company would invest its balance sheet in Bitcoin.
The market’s optimism extended to other cryptocurrencies as well.
Ether,
the second-largest cryptocurrency, was gaining 6.3% to $1,800.24, and has risen 50% over the past 30 days or so.
Solana
was up 4.5% and
Cardano
2%.
Write to Sabrina Escobar at sabrina.escobar@barrons.com