Bitcoin highest level since August 2
U. S. Fed Chief’s speech yesterday caused Bitcoin to soar above $64,000 for the first time since the market’s downturn on August 2.
Following signals of a reduction in interest rates from Federal Reserve (Fed) Chair Jerome Powell’s keynote speech on Friday morning, Bitcoin (BTC) has increased by almost 5% over the last 24 hours, coinciding with a surge in the cryptocurrency market.
The labor market has cooled, and “conditions are now less tight than those that prevailed before the pandemic,” Powell said in his speech, highlighting Bitcoin’s love for low interest rates. Thus, he stated, “the time has come for policy to adjust.”.
The US Federal Reserve’s further confirmation that interest rates would eventually decline led to a 39-day high in bitcoin buyer interest in the US. According to Julio Moreno of CryptoQuant, “demand for bitcoin in the US surged today as the Fed signaled the cycle of lower interest rates will begin.”. 24 X post. Two encouraging catalysts helped lift the sluggish cryptocurrency prices on Friday.
The first came when U. S. Chairman of the Federal Reserve Jerome Powell announced that a cycle of monetary easing would start next month, and as crypto-friendly as RFK Jr. backed Donald Trump, the GOP standard-bearer who is also friendly to cryptocurrencies, in the presidential race.
The presidential race still seems to be about a closer contest even with Kennedy withdrawing and supporting Trump, however, conventional wisdom indicates that the GOP candidate will primarily gain from Kennedy’s removal from the ballot in the so-called “battleground” states.
Kennedy and Trump have both pledged to treat bitcoin and other cryptocurrencies far more kindly than the Biden administration has, with Trump proposing the U. S. establish a strategic reserve for bitcoin and pledge to fire SEC Chairman Gary Gensler right away. It seems the Harris campaign has noticed. Earlier this week, a senior advisor to Harris stated that the Harris administration would encourage the expansion of the cryptocurrency sector.
Low interest rates have historically led to higher prices for bitcoin and the cryptocurrency market. The 2017 ICO boom and bull run in the cryptocurrency market, during which rates ranged from 0.75% to 1% and 1% to 1.25%, respectively, serve as evidence of this. However, in 2018, when the Fed started raising interest rates, the market began to correct.

