On Friday, the crypto market saw a significant rally following two major events. First, Robert F. Kennedy Jr. announced that he would be withdrawing from the 2024 U.S. presidential race and endorsing former President Donald Trump. Additionally, Federal Reserve Chairman Jerome Powell hinted at potential interest rate cuts in the near future.
These announcements sent Bitcoin (BTC) up 5.5% in an hour, pushing its price above $64,000 and sending investors into a bullish frenzy.
RFK Jr. Supports Trump
Robert F. Kennedy Jr. surprised many by announcing at a press conference in Arizona on August 23 that he was withdrawing from the presidential race and endorsing Donald Trump.
He said he supports Trump because of their shared support for free speech, protecting children, and ending the war in Ukraine. Notably, both Kennedy and Trump are also proponents of Bitcoin, showing a strong alignment with digital assets and cryptocurrencies.
Kennedy said he recently met with Trump and his family in Florida, where they agreed to work together. He also tried to meet with Vice President Kamala Harris, but she declined. Although Kennedy is backing off in some key areas, he will still be on the ballot in several states.
His strategy focuses on the possibility of a contingent election, which could occur if neither Trump nor Harris gets the necessary 270 electoral votes, potentially giving Kennedy a chance as a compromise candidate in the House of Representatives.
Fed Chairman Hints at Rate Cuts
Adding to the positive sentiment in the crypto market, Federal Reserve Chairman Jerome Powell hinted that the Fed could soon cut interest rates amid declining inflation. This news has increased confidence that the Fed will ease its current policy, which has remained unchanged since July 2023.
Currently, the market sees a 32% chance of a 0.50% rate cut in September and a 67% chance of a 0.25% cut. Lower interest rates are generally favorable for the crypto market as investors seek higher returns in assets like Bitcoin and Ethereum.
Profits in the crypto market
Following these announcements, other major cryptocurrencies also saw gains. Ethereum (ETH) rose 5.36% to $2,753, while Solana (SOL) rose 5.73% to $151.
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