Bitcoin (BTC) Price Skyrocket To $64K as RFK Jr. Backs Trump & Exit From U.S. Election

On Friday, the crypto market saw a significant rise after two major events, firstly Robert F. Kennedy Jr. announced he would drop out of the 2024 U.S. presidential race and endorse former President Donald Trump, and Federal Reserve Chair Jerome Powell hinted at possible rate cuts soon. 

These announcements led to Bitcoin (BTC) jumping 5.5% in an hour, pushing its price above $64,000 and sparking optimism among investors.

RFK Jr. supports Trump

Robert F. Kennedy Jr. surprised many by announcing his withdrawal from the presidential race and endorsing Donald Trump during a press event in Arizona on August 23. 

He said he is backing Trump because of their shared support for free speech, protecting children, and ending the war in Ukraine. Notably, both Kennedy and Trump are also supporters of 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 back 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 270 electoral votes needed, potentially giving Kennedy a chance as a compromise candidate in the House of Representatives.

Fed Chair Hints at Rate Cuts

Adding to the positive mood in the crypto market, Federal Reserve Chair Jerome Powell hints that the Fed might lower interest rates soon due to slowing inflation. This news has increased confidence that the Fed will ease up on its current policy, which has remained unchanged since July 2023.

Right now, 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 generally benefit the crypto market as investors look for higher returns in assets like Bitcoin and Ethereum.

Gains Across the Crypto Market

Following these announcements, other major cryptocurrencies also saw gains. Ethereum (ETH) rose by 5.36% to $2,753, while Solana (SOL) increased by 5.73% to $151.