What's Behind the Recent Price Surge Of Bitcoin?

You may have realized that Bitcoin has recently gone on a wild price ride. Yesterday, it surged $5,000 to $65,000, not anything to cough at. Let's discuss what may be the cause of this surge.
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The US Federal Reserve.

You have probably heard about them, they are the ones who set interest rates in the US. They have been keeping interest rates at a high level for some time to fight back against inflation. But you know what? They now plan to lower those interest rates. That is massive news for Bitcoin and other types of investment people label 'risky'.

Why?

Well, if interest rates are high, most people play it conservative with their money by putting it in the bank or buying government bonds. When the rates go down, they become risk takers and invest in assets like Bitcoin. When the Fed hinted at a rate cut recently, most investors got excited and began to buy up Bitcoin.

Of course, this isn't the only factor to send Bitcoin surging. Some other pretty interesting stuff is going on in US politics. You see, some big elections are coming in 2024, and the way things are shaping up could be a real boon for Bitcoin.
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Remember Donald Trump?

He used to be pretty anti-crypto, but now he changed his tune. Now, he talks of supporting Bitcoin and even firing the guy who has given crypto companies a hard time. Many Bitcoin fans are now hopeful because of this.

Now, here's another twist: Robert F. Kennedy Jr., an independent presidential candidate who was super pro-Bitcoin, has dropped out of the race to run and announced his support for Trump. Many believe that on the back of this news, Trump's chances of winning are even better, which will be good for Bitcoin.

So, when you add it all up, **the Fed considering lowering interest rates and the political "nonsense" looking good for Bitcoin, it is not that surprising that the price jumped up so quickly.

What does this presage for the future?

It's hard to say. The crypto world does not relent, and things can turn up or down pretty fast. However, at this point, it does look like a lot of people are fairly optimistic about Bitcoin. In case you're into, or are thinking about getting into Bitcoin or cryptocurrency in general, keep a lookout for what the Fed does next and how the election plays out. These things can affect the price of Bitcoin in the following months drastically.

Remember though, when it comes to crypto, it's a gamble. Be smart: do your own research, and only use money which you can afford to lose.

Now, what are your thoughts on this?

Feeling "me" on Bitcoin's price jump, or are you feeling extra cautious?

Posted Using InLeo Alpha