Bitcoin Surges 10% to $104.5K on Inflation Data, Coinbase S&P 500 Inclusion

Bitcoin's price surged to approximately $104.5K, driven by positive inflation data, favorable remarks from President Trump, and Coinbase's recent inclusion in the S&P 500. The crypto asset experienced a pullback despite nearing the $105,000 mark, while most altcoins saw significant gains. Analysts suggest the rally may continue due to a rebound in global risk appetite and increasing mainstream crypto adoption. Keynotes include cooling consumer inflation and upcoming comments by Fed Chair Jerome Powell, which could influence future financial policies.

Coinbase, the largest crypto exchange in the US, will join the S&P 500 index, replacing Discover Financial Services. This milestone marks Coinbase as the first significant, dedicated crypto firm in the index. Despite historical market volatility impacting earnings, Coinbase's growth, including a recent $2.9 billion acquisition of Deribit, has positioned it for inclusion in the benchmark. Shares of Coinbase surged 8% following the announcement.

Cantor Equity Partners disclosed a $458.7 million Bitcoin acquisition related to its upcoming merger with Twenty One Capital, a crypto-focused investment firm backed by Tether, Bitfinex, and SoftBank. This complex deal involves Tether Investments, Tether's El Salvador affiliate, and iFinex, Bitfinex's parent company, purchasing and holding 4,812 BTC in escrow, which will then be transferred to the merged entity. Additionally, blockchain data confirmed that the escrow wallet received these Bitcoins from a Bitfinex hot wallet. The new company, launching under a SPAC structure led by Strike CEO Jack Mallers, plans to control over 42,000 BTC.

GD Culture Group, through its subsidiary AI Catalysis, has secured a funding commitment of up to $300 million through a Common Stock Purchase Agreement with an investor to support its crypto asset treasury strategy. This strategy involves purchasing and holding Bitcoin and Trump Coin to strengthen its balance sheet and align with the decentralized finance ecosystem. The initiative reflects the company's confidence in crypto's role in facilitating a decentralization transformation and enhancing long-term shareholder value.