Bitcoin’s price has experienced a significant surge, reaching $65,000 for the first time since early August. One of the key factors that have contributed to this surge is the US Federal Reserve’s economic policies. The relationship between Bitcoin and the US Federal Reserve has been evident in recent years, particularly following the change in stance during the COVID-19 crash. The subsequent inflation spike resulted in a substantial increase in interest rates, leading to a decrease in funds allocated to risk-on assets like BTC.
US Presidential Election Cycle
Another significant factor influencing Bitcoin’s price surge is the current US presidential election cycle. The differences in approach towards the crypto industry between the Democratic and Republican candidates have played a vital role. While the Democrats, led by President Joe Biden, have been critical of the crypto industry, the Republicans, particularly Donald Trump, have shown support for Bitcoin, miners, and the industry as a whole.
Recent developments in the US presidential election have also impacted Bitcoin’s price movement. Following Biden’s withdrawal from the 2024 race and the subsequent endorsement of Trump by Robert F. Kennedy, a vocal Bitcoin supporter, there has been a shift in the narrative surrounding the elections. This endorsement has been perceived positively for Trump and the overall crypto market.
The combined effect of the US Federal Reserve’s economic policies and the US presidential election cycle has contributed to Bitcoin’s price surge from $60,000 to $65,000 within 24 hours. The anticipation of the Fed lowering key interest rates in September, coupled with the shifting political landscape in the US, has created a bullish sentiment for Bitcoin and the wider crypto market.
Bitcoin’s recent price surge to $65,000 can be attributed to a combination of factors, including the US Federal Reserve’s economic policies and the dynamics of the ongoing US presidential election cycle. As these external factors continue to influence market sentiment and investor behavior, it is crucial for traders and investors to stay informed and adapt their strategies accordingly to navigate the volatility in the cryptocurrency market.