Bitcoin, the leading cryptocurrency, saw an astronomical rise of 1,760% in value over the five years leading up to its all-time high in March 2024. However, since reaching this peak, Bitcoin’s price has declined by approximately 13%. For the past six months, Bitcoin has been trading sideways, with investors eagerly awaiting a significant price movement.
On August 23, two major events positively impacted the sluggish crypto prices. First, U.S. Federal Reserve Chairman Jerome Powell announced the commencement of a monetary easing cycle starting next month. This news alone pushed Bitcoin’s price up by about 3%. Later that day, Robert F. Kennedy Jr., a known crypto advocate, endorsed Donald Trump in the presidential campaign, further boosting Bitcoin’s price to $63,800, marking a 5.6% increase over 24 hours. The broader CoinDesk 20 Index also saw a 4.7% rise, with other cryptocurrencies like Ether, Tezos (XTX), and Solana (SOL) posting gains of 5% or more.
The endorsement of Trump by Kennedy, despite his exit from the presidential race, has significant political implications. The race remains highly competitive, but conventional wisdom suggests that Kennedy’s removal from the ballot in key battleground states will likely benefit the GOP candidate. Both Trump and Kennedy have expressed a more favorable stance towards Bitcoin and cryptocurrencies compared to the Biden administration. Trump has even proposed the creation of a Bitcoin strategic reserve and the immediate dismissal of SEC chief Gary Gensler. In response, the Harris campaign has indicated a supportive stance towards the growth of the crypto industry.
The recent approval of a crypto ETF by the SEC and the political endorsements favoring cryptocurrencies have provided a much-needed boost to the crypto market. While Bitcoin’s price has been relatively stable in recent months, these developments could pave the way for significant future movements. The political landscape, with its potential for more crypto-friendly policies, adds another layer of optimism for investors. As the market continues to evolve, these factors will likely play a crucial role in shaping the future of cryptocurrencies.
