SUMMARY

• Bitcoin approached the $64,000 mark following Fed Chair Jerome Powell’s dovish statement at the Jackson Hole symposium, while U.S. equities also gained, with the S&P 500 and Nasdaq rising 1.2% and 1.8% respectively.
• Independent candidate RFK Jr. is suspending his presidential campaign and withdrawing his name from the ballot in ten key battleground states, contributing to Bitcoin’s surge.

Bitcoin surged past $63,000 after Federal Reserve Chair Jerome Powell flagged confidence that U.S. inflation is on a sustainable path back to 2%, hinting that the central bank may soon commence lowering interest rates. His comments at the Jackson Hole symposium on Friday drove positive reactions across both the cryptocurrency and traditional financial markets. Adding to Bitcoin’s impulse was news that RFK Jr. is suspending his presidential campaign and endorsing Donald Trump, both of whom have shown support for Bitcoin and the broader crypto industry.

In his speech at the Central Bankers’ conference in Wyoming, Powell stated,” The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will hinge on incoming data, the evolving outlook, and the balance of risks.” This dovish tone was welcomed by investors, leading to a broader market rally. The Dow Jones Industrial Average climbed 417 points, or 1%, while the S&P 500 picked up 1.2%, and the Nasdaq Composite advanced 1.8%, with technology stocks ushering the charge in early trading in New York.

The global cryptocurrency market capitalization now stands at $2.28 trillion, mirroring a 0.6% increase in the last 24 hours, according to CoinGecko data. Bitcoin’s price, in particular, has been considerably responsive to the possibility of financial easing, as it’s frequently viewed by investors as a hedge against inflation and a store of value during economic uncertainty.

corresponding to the CME FedWatch tool, there’s now a 67.5% probability of a 25-basis point cut and a 32.5% chance of a 50-basis point cut in the federal funds rate at the coming month’s Federal Open Market Committee (FOMC) meeting. Bitfinex Head of Derivatives, Jag Kooner, highlighted that Powell’s speech was a significant indicator of what to anticipate at the forthcoming FOMC meeting on September 18. He commented that investors would be closely observing for any hints about the scale and timing of future cuts.

The broader economic landscape, with indicators correspondent as GDP and jobless claims, suggests that the U.S. economy isn’t in the same ominous state as it was during the 2009 recession. This reassurance has driven confidence that the expected rate cuts are further a strategic adjustment rather than a response to an impending crisis. The likelihood of a softer financial policy has invigorated markets, with both traditional equities and cryptocurrencies profiting from this shift.

The cryptocurrency market received an additional boost from the announcement that RFK Jr., a remarkable crypto-friendly figure, is suspending his presidential campaign and advocating Donald Trump. This development is seen as potentially beneficial for Trump, especially in battleground states where RFK Jr.’s withdrawal may consolidate the pro-crypto vote. Both Trump and Kennedy have supported a more positive regulatory environment for Bitcoin and other cryptocurrencies, differing with the Biden administration’s more conservative attitude. Trump has even indicated creating a U.S. Bitcoin strategic reserve and has promised to fire SEC Chief Gary Gensler, a known critic of the crypto industry.

Following Powell’s speech and the Kennedy endorsement, Bitcoin (BTC) persisted on its upward track, trading at $63,800, over 5.6% over the past 24 hours. The broader CoinDesk 20 Index, which tracks the top 20 cryptocurrencies, was up 4.7% during the same period, with tokens like Ether (ETH), Tezos (XTZ), and Solana (SOL) posting earnings of 5% or further.

The presidential race remains competitive, with the scrapping of Kennedy from the ballot in crucial states probably benefiting Trump. nonetheless, with both Trump and the Harris campaign signaling support for the growth of the crypto industry, the future of U.S. cryptocurrency regulation could be more favorable regardless of the election conclusion. A senior Harris adviser recently indicated that a Harris administration would also be supporting the crypto industry, signaling a possible shift in the Democratic Party’s stance on digital assets.

Bitcoin’s rally past $63,000 reflects the market’s response to the Fed’s anticipated policy adaptations and the evolving U.S. political landscape. With possible rate cuts on the horizon and growing political support for cryptocurrencies, the future looks promising for Bitcoin and the broader digital asset market. Investors will be closely watching economic indicators and political developments, as these factors will probably play a pivotal role in shaping market dynamics in the coming months.