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Bitcoin Surpasses $64,000 as Trump's Pro-Crypto Remarks Offset MicroStrategy Sale
Bitcoin's price reversed earlier losses to trade above $64,000 on Monday, buoyed by supportive comments from former President Donald Trump. The recovery came after the market initially reacted to news that MicroStrategy, a major corporate holder of the cryptocurrency, had sold a substantial portion of its holdings.
According to Investing.com data, Bitcoin was last trading up 1.7% at $64,183.5. The move extends gains from the previous week, when softer-than-expected U.S. jobs data eased investor concerns about aggressive Federal Reserve rate hikes, which typically weigh on speculative assets like cryptocurrencies.
Trump's Comments Bolster Sentiment
Market sentiment turned positive after former President Trump expressed a favorable view of digital assets. During an event at the Oval Office, when asked if Bitcoin might be included in a new government-backed investment initiative, Trump stated, "I’ve become a big crypto guy."
He added that he was a "fan" and "very much for" cryptocurrencies, a notable shift from his previous skepticism. This endorsement from a prominent political figure appeared to inject fresh optimism into the market, overpowering earlier negative news.
MicroStrategy Sale Creates Headwinds
Earlier in the session, the market faced selling pressure after a regulatory filing from MicroStrategy revealed it had sold 3,588 bitcoin for total proceeds of $216 million.
AdThe company, founded by Michael Saylor, detailed the sales in two tranches:
- 1,363 BTC sold between June 29 and June 30 for $80.8 million, at an average price of $59,256.
- 2,225 BTC sold between July 1 and July 5 for $135.2 million, at an average price of $60,773.
MicroStrategy stated the proceeds were used for preferred stock distributions and to replenish its cash reserves. The filing also noted the company recorded an $8.32 billion loss on its digital assets for the quarter ending June 30.
Market Outlook and Altcoin Performance
Investors are now looking ahead to Wednesday's release of the minutes from the Federal Reserve's June meeting for further clues on monetary policy. In another positive sign for the crypto market, last week saw the first net inflow into spot Bitcoin ETFs since mid-June, suggesting that heavy selling pressure may be subsiding after eight consecutive weeks of outflows.
Most major alternative cryptocurrencies, or altcoins, tracked Bitcoin's gains. Ethereum, the second-largest cryptocurrency, rose 1.5% to $1,812.81, while XRP added 0.5%. Other major tokens like Solana also saw modest gains.