On Friday, the crypto market saw a significant surge following two major events: First, Robert F. Kennedy Jr. announced that he would drop out of the 2024 U.S. presidential campaign and support former President Donald Trump, and second, Federal Reserve Chairman Jerome Powell hinted at possible interest rate cuts soon.
These announcements caused the Bitcoin (BTC) price to rise by 5.5% within an hour, pushing its price above $64,000 and sparking optimism among investors.
RFK Jr. supports Trump
Robert F. Kennedy Jr. surprised many when he announced his withdrawal from the presidential campaign and endorsed Donald Trump at a press conference in Arizona on August 23.
He said he supports Trump because they both support freedom of speech, protecting children, and ending the war in Ukraine. Notably, both Kennedy and Trump support Bitcoin, showing a strong alignment on digital assets and cryptocurrencies.
Kennedy mentioned that 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. Even though Kennedy is stepping down in some key areas, he will still be on the ballot in several states.
His strategy focuses on the possibility of a contingent election. This could happen if neither Trump nor Harris receive the necessary 270 electoral votes. This could give Kennedy a chance as a compromise candidate in the House of Representatives.
Fed chief hints at interest rate cuts
Adding to the positive sentiment in the crypto market is the fact that Federal Reserve Chairman Jerome Powell has suggested that the Fed may soon cut interest rates due to easing inflation. This news has boosted confidence that the Fed will ease its current policy, which has remained unchanged since July 2023.
Currently, the market sees a 32 percent chance of a 0.50% rate cut in September and a 67 percent chance of a 0.25% cut. Lower interest rates generally benefit the crypto market as investors look for higher returns on assets like Bitcoin and Ethereum.
Gains across the entire crypto market
Following these announcements, other major cryptocurrencies also saw gains. Ethereum (ETH) rose 5.36% to $2,753, while Solana (SOL) gained 5.73% to $151.
