Bank

Jerome Powell

Chair

Bitcoin

Gary

After a relatively weak period of trading sideways for days and days, bitcoin’s price went on the offensive on Friday evening and Saturday morning and tapped $65,000 for the first time since early August.
Some of the most probable reasons behind this $5,000 daily surge seem to be connected to the US central bank and the upcoming elections in the country.
<h2 id="first-it-was-the-fed">First, it Was the Fed</h2>
Bitcoin’s relationship with the US Federal Reserve’s economic policies has been demonstrated numerous times in the past few years, especially since the monetary entity changed its tune during the COVID-19 crash. The subsequent inflation spike led to an unprecedented hike in interest rates.
The multi-decade peak in the rates resulted in fewer funds getting allocated to risk-on assets like BTC, which prompted numerous experts to expect a price surge once the US Fed <a href="https://cryptopotato.com/heres-everything-you-need-to-know-about-powells-jackson-hole-speech/" data-wpel-link="internal" rel="noopener noreferrer nofollow">decided to pivot</a> from its strategy. In other words, the Fed was anticipated to follow the example set by the ECB, the Bank of England, and the Bank of Canada and lower the key interest rates.
After a few delays, Chair Jerome Powell finally <a href="https://cryptopotato.com/bitcoin-surges-as-fed-chair-promises-rate-cuts-in-september/" data-wpel-link="internal" rel="noopener noreferrer nofollow">announced</a> on Friday that it was time for such actions. During his speech at the annual 2024 Jackson Hole Economic Symposium, he didn’t provide an exact date when the rates will be cut, but the general expectations are that it will be in September.
<h2 id="then-it-was-rfk">Then, it Was RFK</h2>
Aside from the Fed’s actions, BTC’s price has been strongly correlated to the current US presidential election cycle. After all, the Democrats, with their current President Joe Biden, have been anything but nice to the crypto industry, led by the SEC’s (unsuccessful) crusade.
On the other hand, the Republican’s candidate – Donald Trump, has changed his stance on the industry and promised all good things to happen to Bitcoin, miners, and everything in between. Yes, he even <a href="https://cryptopotato.com/donald-trump-says-bitcoin-will-likely-overtake-gold-one-day-live-at-bitcoin-2024/" data-wpel-link="internal" rel="noopener noreferrer nofollow">said</a> he will fire the SEC’s Chair, Gary Gensler. Oh yes, on his first day in office.
Biden’s withdrawal from the 2024 race and the subsequent replacement by current VP Kamala Harris changed the narrative for this year’s elections. However, more promising news for Trump, and apparently for the crypto industry, came last night as well.
This time, Robert F. Kennedy, who was the most vocal Bitcoin supporter among all candidates, <a href="https://cryptopotato.com/robert-f-kennedy-jr-endorses-donald-trump-uniting-pro-bitcoin-candidates/" data-wpel-link="internal" rel="noopener noreferrer nofollow">suspended</a> his independent campaign and endorsed Trump. This was regarded as a positive development for Trump and, hence, the crypto market.
The <a href="https://cryptopotato.com/over-130m-in-liquidations-as-bitcoin-skyrockets-to-a-3-week-peak-after-powells-rate-cut-promise/" data-wpel-link="internal" rel="noopener noreferrer nofollow">surge</a> from $60,000 to $65,000 in 24 hours could possibly attributed to both of the aforementioned reasons. As such, it would be interesting to follow the upcoming elections, the Fed’s policy change, and the impact on the crypto market.
The post <a href="https://cryptopotato.com/is-this-why-bitcoin-btc-exploded-by-5k-in-24-hours/" rel="noopener noreferrer nofollow">Is This Why Bitcoin (BTC) Shot Up by $5K in 24 Hours?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Is This Why Bitcoin (BTC) Shot Up by $5K in 24 Hours?

Table of Contents

CryptoPotato_News

Other articles published on Aug 24, 2024

SEC Halts Submission of 19b-4 Form for Solana ETF Amid Security Classification Concerns

Bitcoin: Demand is Skyrocketing and Surpassing Miners’ Production

Shiba Inu OG Picks 3 Ethereum Tokens Likely to Mirror SHIB’s 2021 Explosive Bull Run

Peasant Pepe Will Explode Over 19,000% Before Exchange Listings, as Shiba Inu and Dogecoin Lag

Stellar, Terra Classic, and Qubetics Whitelist: Exploring the Future of Cryptocurrency Through In...

Bitcoin Exploded to $65K While Solana and Shiba Inu Gained 6% Daily (Weekend Watch)

Join our free newsletter for daily crypto updates!