:max_bytes(150000):strip_icc()/GettyImages-2159997165-b0464b7644634019b233519dc8c8325a.jpg "Bitcoin Stalls at $57K Despite Cooler Inflation")
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Key Takeaways
- The price of bitcoin briefly rose above $59,000 around the time of the release of U.S. CPI data this morning.
- Cooler-than-expected inflation data bolsters possibility of a rate cut by the Federal Reserve that could benefit riskier assets such as cryptocurrencies.
- Germany is still selling bitcoin 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, experiencing another $147.4 million of inflows.
- MicroStrategy is up more than 3% following news that it will undergo a 10-to-1 stock split.
Bitcoin (BTC) prices surged briefly after cooler-than-expected June inflation data but failed to break the $60K mark.
This softer inflation print bolsters the possibility of an interest-rate cut by the U.S. Federal Reserve, which bodes well for cryptocurrencies including bitcoin. The Fed hiked rates to a 23-year high to combat rampant inflation, but that pushed up Treasury yields, making them a more attractive investment than riskier assets such as 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, Selling Pressures Cancel Out
Just like the past few days, demand from inflows into spot bitcoin exchange-traded funds (ETFs) and selling pressure from bitcoin sales by the German government are canceling each other out, effectively stalling the price of bitcoin.
German authorities now hold less than a fifth of the 50,000 bitcoin they seized from an online piracy website, and have already sent $328.89 million worth of bitcoin to various exchanges and other addresses today.
Spot bitcoin ETFs continued their strong week on Wednesday, enjoying $147.4 million of inflows, according to Farside Investors. This takes this week’s total flows into spot bitcoin ETFs to $658.6 million.
MicroStrategy Splits Stock
MicroStrategy (MSTR) shares are up more than 3% in intraday trading Thursday, after the company announced a 10-for-1 stock split. After markets close on Aug. 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 to trade but also help make each share more affordable for investors to purchase. MicroStrategy shares, which have more than doubled year-to-date, are priced at more than $1,300 each.
As a large corporate holder of bitcoin, MicroStrategy has benefited from the rally in bitcoin prices this year after the approval of spot bitcoin ETFs. As of April 26, the company owned 214,400 bitcoin.