Key Takeaways
- Bitcoin surged 7% to $65,000 after Powell's rate cut hint.
- Robert F. Kennedy Jr. endorsed Donald Trump, backing Bitcoin policies.
- The market anticipates a Fed rate cut of 0.25% to 0.50% in September.
On August 23, Bitcoin surged 7%, briefly reaching $65,000.
Two major developments contributed to this rise:
Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts, and Robert F. Kennedy Jr. surprised many by endorsing Donald Trump.
Rate cuts
Powell’s comments at the Jackson Hole symposium sparked optimism that the Federal Reserve might soon cut rates, making assets like Bitcoin more attractive.
He signaled confidence in inflation control, suggesting that economic conditions could soon favor rate reductions.
He stated:
The direction of travel is clear.
As investors anticipated a more accommodating monetary environment, Bitcoin gained value. Leena ElDeeb of 21Shares noted that rate cuts typically benefit risk-on assets like Bitcoin, as borrowing costs decrease, boosting investor appetite.
Kennedy backs Trump
In an unexpected political twist, Robert F. Kennedy Jr., a long-time Democrat, suspended his independent presidential campaign to back Trump.
Kennedy’s support for Bitcoin, combined with Trump’s favorable stance, fueled further optimism among Bitcoin investors.
His endorsement is viewed as potentially positive for Bitcoin policies under a future Trump administration.
Kennedy’s move stirred controversy within his family, but the Bitcoin market reacted positively, driving prices up alongside Powell’s economic hints.
