Bitcoin’s price surged to $65,000 after trading sideways for days, a move that has left many in the crypto community wondering about the reasons behind such a rapid increase. One of the main factors that contributed to this surge is the US Federal Reserve’s economic policies. The relationship between Bitcoin and the Fed has been evident in the past few years, especially during the COVID-19 crash when the monetary entity changed its tune. The subsequent inflation spike led to an unprecedented hike in interest rates, resulting in fewer funds being allocated to risk-on assets like BTC. Experts had been anticipating a price surge once the Fed decided to pivot from its strategy. Finally, Chair Jerome Powell announced during the annual 2024 Jackson Hole Economic Symposium that the rates will be cut in September, leading to a positive sentiment in the market.
US Presidential Election Cycle Influence
Along with the Fed’s actions, Bitcoin’s price has also been influenced by the US presidential election cycle. The stance of the Democrats and Republicans regarding the crypto industry has had a significant impact on the market. While the Democrats, led by President Joe Biden, have been critical of the industry, the Republicans, especially Donald Trump, have shown support for Bitcoin and miners. Trump’s promises of positive changes for the industry, including firing the SEC’s Chair, Gary Gensler, have created a sense of optimism among crypto investors. The recent withdrawal of Robert F. Kennedy from the 2024 race and his endorsement of Trump further boosted the market sentiment, leading to the surge in Bitcoin’s price from $60,000 to $65,000 within 24 hours.
Combined Factors
The surge in Bitcoin’s price to $65,000 can be attributed to a combination of factors, including the US Federal Reserve’s announcement of interest rate cuts and the positive developments in the US presidential election cycle. The shift in the Fed’s economic policies and the support from the Republicans, especially Trump, have created a bullish outlook for Bitcoin and the crypto market as a whole. As the market continues to react to these developments, it will be interesting to see how Bitcoin’s price performance evolves in the coming weeks and months.
The recent surge in Bitcoin’s price to $65,000 is a result of multiple factors, including the US Federal Reserve’s decision to cut interest rates and the positive developments in the US presidential election cycle. While these factors have contributed to the bullish sentiment in the market, it is important for investors to stay informed and monitor the ongoing developments that may impact the price of Bitcoin in the future.