Bitcoin rebounds to over $60,500, nearing two-week highs as Bitcoin ETFs see major inflows. Former President Trump discloses significant cryptocurrency holdings, while Coinbase reports strong Q2 revenue. Ethereum also shows a rise, but both cryptocurrencies remain below their previous peaks. Digital asset investments remain highly volatile, with investors advised to stay alert to market trends and selling opportunities.
In a notable comeback for cryptocurrency, Bitcoin saw a rise above $60,500 early Tuesday morning, hitting levels not seen in almost two weeks. Spot Bitcoin exchange-traded funds (ETFs) also gained attention, pulling in $62.1 million in inflows on August 19, a figure that marks the highest for daily inflows since August 8 according to insights from Farside Investors.
Additionally, last week’s campaign disclosures revealed that former President Donald Trump possesses over $3 million in various cryptocurrencies alongside earning significant profits from his NFT ventures. Bringing more corporate news to the table, Coinbase reported cleared revenue for its second quarter, largely attributed to a noticeable surge in trading volumes and earnings from transactions.
Meanwhile, Ethereum’s spot ETF trading kicked off on July 23, following approval from the SEC. This regulatory nod comes alongside political developments, particularly after Trump’s recent endorsement of crypto-friendly Senator J.D. Vance as his potential vice-presidential nominee, which coincided with an uptick in crypto prices.
As of Tuesday, Bitcoin was trading at around $60,550, reflecting a 3.3% increase within the past 24 hours. The cryptocurrency reached a peak of $61,375 overnight, its first foray above the $61,000 mark since August 14. Notably, Bitcoin had set an all-time record of $73,798 on March 14, beating its previous record of $68,990 from November 2021.
Bitcoin has demonstrated impressive growth, rebounding approximately 157% in 2023 and showing an overall increase of about 44% this year. In terms of other cryptocurrencies, Ethereum traded near $2,640, marking a rise of 1.6% in the last day. Although it hit a yearly high of $4,092 back on March 12, it remains significantly lower than its peak of over $4,800 in November 2021.
After a rough early August selloff, Ethereum has managed to recover around 15% so far in 2024. Investors are reminded that digital asset investments are inherently volatile. With varying fundamentals and indicators, they should continue to focus on two main objectives: understanding when to sell to either limit losses or take profits, and being prepared to capitalise on rebounds in cryptocurrency.
Despite the initial idea of cryptocurrencies acting as inflation hedges, they seem to be following broader market trends instead. Investors keen on tracking these trends should reference guides like The Big Picture and Market Pulse for daily updates.
For more insights into navigating the digital asset space, IBD offers a dedicated page on the best cryptocurrencies and stocks to watch. And if you’re looking for an explanation of what cryptocurrency is, IBD also has a detailed explainer ready for you.
