After a prolonged period of stagnation, Bitcoin’s price surged on Friday evening and Saturday morning, reaching $65,000 for the first time since early August. This $5,000 daily increase seems to be influenced by the US central bank and the upcoming elections.
### First, it Was the Fed
Bitcoin’s price has often correlated with the US Federal Reserve’s economic policies. During the COVID-19 crisis, the Fed’s reaction and subsequent inflation spike led to a significant increase in interest rates. This resulted in fewer investments in risk-on assets like BTC, with many experts predicting a price surge once the Fed shifted its strategy. After some delays, Chair Jerome Powell announced on Friday at the 2024 Jackson Hole Economic Symposium that interest rates would soon be lowered, though no exact date was given.
### Then, it Was RFK
BTC’s price is also closely tied to the US presidential election cycle. Under President Joe Biden, the crypto industry faced challenges, particularly from the SEC. Conversely, Republican candidate Donald Trump has promised positive changes for Bitcoin and the crypto industry, even stating he would fire SEC Chair Gary Gensler on his first day in office. Biden’s exit from the 2024 race, replaced by VP Kamala Harris, altered the election dynamics. In a significant development, pro-Bitcoin candidate Robert F. Kennedy Jr. suspended his independent campaign and endorsed Trump, which was seen as a positive move for the crypto market.
The surge from $60,000 to $65,000 within 24 hours could be attributed to these factors. The upcoming elections and Fed policy changes are worth monitoring for their potential impact on the crypto market.
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