Cryptocurrency prices rose on Friday after two days of declines as investors shunned risk assets.
Bitcoin was up 4.7% at $67,799.17, according to Coin Metrics, and ether rose 4.5% to $3,262.76.
On the stock front, the tech-heavy Nasdaq Composite and the S&P 500, which this week had their worst trading day since 2022, soared. Coinbase And MicroStrategies jumped 4% and 9% respectively on Friday.
Bitcoin surges to end tough week
Bitcoin soared after the personal consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, showed price increases edged down in June from a year ago, setting the stage for a widely expected interest rate cut in September.
Investors are also looking forward to the second day of the Bitcoin conference in Nashville, where former President Donald Trump is expected to deliver a speech on Saturday. Many expect that Trump’s favorable comments on cryptocurrencies — who has presented himself in recent weeks as the pro-crypto candidate for this year’s election — could send prices soaring in the coming days.
However, bitcoin was little changed over the week, while ether is set to end the week with a 7% loss.
The rout in technology stocks this week, driven by disappointing quarterly results from Alphabet and Tesla, has caused investors to shy away from risk assets, including bitcoin and ether.
The market is also in the midst of an ongoing Mt. Gox repayment schedule that has led to bitcoin selling pressure this month, at the same time as the recently launched Grayscale Ethereum Trust (ETHE) has seen significant outflows — relative to inflows from other funds — that have put downward pressure on the price of ether.
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