Bitcoin Rises Past $107K as FHFA’s Pulte Orders Crypto Consideration in Mortgage Applications
Bitcoin’s price experienced a significant surge on Wednesday, climbing above $107,000 and marking a 2.2% increase over the past 24 hours. This outpaced the CoinDesk 20 index’s 0.5% gain, with Bitcoin Cash (BCH) showing particularly strong performance, rising by 7.4%. Bitcoin’s market dominance continues its upward trend, now encompassing nearly 66% of the total cryptocurrency market capitalization, a substantial increase from 39% in November 2023.
This price movement may be attributed, in part, to a statement by William Pulte, Director of the Federal Housing Finance Agency (FHFA). Pulte announced that Fannie Mae and Freddie Mac, key players in the US mortgage market, will soon accept cryptocurrencies, including Bitcoin, as assets for loan applications. This decision holds two-fold significance: it simplifies home purchases for Bitcoin holders who can now utilize their holdings without selling, and it represents a degree of government acceptance of Bitcoin risk, given the implicit government guarantee on Fannie Mae/Freddie Mac loans. Matt Cole, CEO of Strive, highlighted these points in a social media post.
Interestingly, the recent ceasefire brokered by Donald Trump between Israel and Iran appears to have also contributed to Bitcoin’s price increase. This contrasts with the typical safe-haven narrative often associated with Bitcoin, and with gold’s performance during similar geopolitical events. Charlie Morris of ByteTree noted that gold tends to benefit from periods of conflict while Bitcoin tends to thrive in times of peace, referencing the contrasting price movements of gold and Bitcoin during the recent Middle Eastern tensions.
The cryptocurrency stock market displayed mixed results. Bitcoin mining companies showed a divergence in performance; CleanSpark (CLSK) saw a 6.7% increase, while CoreWeave (CORZ) experienced a similar decline. Circle (CRCL), however, saw a more significant drop, falling 11% for the day and approximately 33% from its Monday peak near $300 per share. Despite this decline, CRCL still trades at more than six times its initial public offering (IPO) price of $31. The current price stands at $198.62.
