Today has been an exciting day for Bitcoin enthusiasts. The price of Bitcoin surged past $61,000, and you might be wondering what’s behind this sharp rise. Let’s look at the factors that are pushing Bitcoin’s price up today.
What’s Going On with the U.S. Labor Market?
Earlier today, some surprising news came out about the U.S. labor market. The Bureau of Labor Statistics released revisions showing that job growth from March 2023 to March 2024 was 818,000 fewer than initially expected. So how does this affect Bitcoin?
Well, when the economy shows signs of weakness, like fewer jobs being created, it often leads to speculation that the Federal Reserve might cut interest rates sooner than planned. Lower interest rates generally mean that borrowing becomes cheaper, and the economy gets a bit of a boost. But for us in the Bitcoin community, it also means that the value of the dollar could weaken, making assets like Bitcoin more attractive. That’s likely why we’re seeing the price of Bitcoin shoot up today.
RFK Jr. Stepping Out and Supporting Donald Trump
But that’s not all. There’s also been some big news in the political arena that’s impacting Bitcoin’s price. Following some recent posts of his on social media platform X, there is speculation of Robert Kennedy Jr. stepping out of the 2024 U.S. presidential race. And here’s the kicker—he’s expected to throw his full support behind Donald Trump on Friday when he is addressing the nation live, as he just announced.
I am going to address the nation this Friday.https://t.co/BqaMNq0hKn pic.twitter.com/N31edn01ki
— Robert F. Kennedy Jr (@RobertKennedyJr) August 21, 2024
Why would this matter? Well, Robert Kennedy Jr.’s supporters are largely people who might otherwise support Donald Trump. His exit from the race could consolidate more votes for Trump, which seems to be good news for Bitcoin.
Trump’s Plans and Bitcoin’s Future
You might recall that Donald Trump has previously talked about creating a Strategic Bitcoin Reserve if he’s elected. This reserve would include the Bitcoin that the U.S. government seized during the takedown of Silk Road, a Dark Web marketplace that was shut down back in 2014.
With Trump now the clear favorite in the betting markets, his potential policies are gaining more attention. Trump’s interest in Bitcoin is seen as a positive signal for the cryptocurrency, which could have also been an influence on Bitcoin price today, moving up.
Friday: Jerome Powel Speaks
All eyes are now on Jerome Powell, the chair of the U.S. central bank. On Friday, Powell is set to speak at the Jackson Hole symposium, an event that gathers central bankers from around the world. He’s expected to address the U.S. labor market and might give some clues about the Fed’s plans for interest rates.
Given the latest data, there’s growing speculation that the Fed might implement multiple interest rate cuts throughout 2024 to help avoid a potential recession. If that happens, it could continue to drive up the price of Bitcoin as investors look for assets that can protect against a weakening dollar.
At press time, Bitcoin is trading at $61,018, good for gains of over 3% in the past 24 hours.
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