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MicroStrategy and crypto stocks surge as Bitcoin reclaims the $65,000 level

Published 05/06/2024, 05:02 AM
Updated 05/06/2024, 05:04 AM
© Reuters MicroStrategy and crypto stocks surge as Bitcoin reclaims the $65,000 level
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Bitcoin's price reclaimed the $65,000 mark on Monday, continuing its latest uptrend that helped the world’s largest cryptocurrency emerge from bear market territory over the weekend.

Bitcoinwas trading at $65,393 at the time of writing, up 2.7% in the past 24 hours.

Amidst this resurgence, crypto-related stocks also rose into the green territory in Monday’s premarket trading, with MicroStrategy (MSTR) and Marathon Digital (NASDAQ:MARA) leading the gains at +8.7% and +7.7%, respectively.

Meanwhile, CleanSpark (NASDAQ:CLSK) jumped 5.6%, Riot Platforms (NASDAQ:RIOT) climbed 4.5%, and Coinbase (NASDAQ:COIN) added 3.6%.

Bitcoin’s resurgence was primarily driven by weaker-than-expected nonfarm payroll data, which weighed on the US dollar while increasing the appeal for risk assets, including cryptocurrencies.

Markets are now factoring in a greater likelihood of a 25-basis-point rate cut by the Federal Reserve in September, which would be a more favorable scenario for cryptocurrencies as they generally flourish in a low-interest, high-liquidity environment.

While the cooling labor market adds momentum for the Fed to consider interest rate reductions, the recent payroll data follows five consecutive months of unexpectedly strong readings, and inflation remains above the central bank's 2% annual target, keeping some pressure on the Fed.

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