Bitcoin is rising again. The reason is what Jerome Powell, the head of the Fed, said. But that’s not the only thing that has fueled the gains.
Bitcoin price is finally rising!
Bitcoin rose 5% in a day. Today, 1 BTC costs around $64,000. Overnight, the rate approached $65,000. Finally, something is happening on the cryptocurrency market!
Why did BTC go up in price? The direct cause was yesterday’s speech by Jerome Powell, the chairman of the Fed. The official did what everyone on the floor was waiting for. He basically announced that the central bank would start a series of interest rate cuts in September. And in an even more direct way than I expected.
It is time to adjust monetary policy. The way forward is clear, and the timing and pace of interest rate cuts will depend on incoming data
– you could hear this yesterday during Powell’s speech in Jackson Hole.
The Fed chairman argued that the cuts would be possible thanks to winning against inflation:
Inflation is now much closer to our target, with prices up 2.5% over the past 12 months. After a pause earlier this year, progress towards our 2% target has resumed. My confidence has increased that inflation is on a sustainable path back to 2%.
However, it may not only be about falling inflation, but also about the disturbing data on the labor market. This topic was mentioned during the speech:
We will do everything we can to support a strong labour market as we continue to progress towards price stability.
Powell’s words quickly weakened the dollar and strengthened cryptocurrencies. The announcement of interest rate cuts means that money on the market will be more accessible and cheaper. This will drive growth in assets: stocks, cryptocurrencies and metals.
Not just Powell…
But that’s not all. Bitcoin’s price may also be rising due to Robert F. Kennedy’s withdrawal from the race for the White House.
This independent politician had a few percent support in the polls. This is not enough to win the election and even for the media to invite him to TV debates. However, it is enough to, for example, become a member of the future president’s government. Kennedy probably played in this way. He has already officially supported Donald Trump, thus increasing his chances of victory.
It is worth adding that Kennedy is a pro-Bitcoin politician. He admitted that he invests in BTC and also supports the idea of the US buying Bitcoins.
Bitcoin has a foundation for growth. Lower interest rates are probably a foregone conclusion. In addition, the chances of Trump winning are growing.
