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MicroStrategy and Cryptocurrency Shares Soar as Bitcoin Reaches $65,000.
Bitcoin (BTC) price surpassed the $65,000 level on Monday, continuing the recent bullish trend that helped the most valuable digital currency recover after a period of losing value over the weekend.
At the time of writing this report, BTC was valued at $65,393 and has increased by 2.7% in the last 24 hours.
In line with this positive movement, stocks associated with cryptocurrencies also experienced gains during Monday's pre-market trading session. MicroStrategy (MSTR) and Marathon Digital (NASDAQ:MARA) came to the fore with increases of 8.7% and 7.7%, respectively.
Additionally, CleanSpark (NASDAQ:CLSK) was up 5.6%, Riot Platforms (NASDAQ:RIOT) was up 4.5%, and Coinbase (NASDAQ:COIN) was up 3.6%.
The recent rise in Bitcoin's value can largely be attributed to the release of weaker-than-expected US employment growth data, which negatively impacted the US dollar and increased the appeal of higher-risk investments such as digital currencies.
Investors now see a higher likelihood that the Federal Reserve will cut interest rates by 25 basis points in September, which would create a more supportive environment for digital currencies. These currencies tend to perform better when interest rates are low and market liquidity is high.
While the possibility of a slowdown in job creation has supported the Federal Reserve's consideration of cutting interest rates, the latest employment data came on the back of stronger-than-expected five-month employment growth figures and there is no pressure on the Federal Reserve to maintain current rates as inflation still exceeds the central bank's annual target of 2%. There is some pressure.
