Bitcoin Surges Past $117K as Trump Taps Stephen Miran for Federal Reserve
Bitcoin’s price surge above $117,000 following a dip below $112,000 can be attributed to a confluence of factors. Initially, President Trump’s executive order permitting cryptocurrencies in 401(k) retirement plans provided a significant boost to the crypto market. This action, now finalized with the order’s signing, injected renewed confidence into the sector.
Further fueling the rise was the nomination of Stephen Miran to the Federal Reserve’s Board of Governors. Miran, currently the chairman of the White House Council of Economic Advisers, is seen as potentially aligning with the President’s dovish stance on interest rates. This perception, coupled with recent statements from several Federal Reserve speakers, significantly increased market expectations of an imminent interest rate cut.
The expectation of a rate cut stems from recent economic data, including weak jobs numbers and a soft ISM Services print. Market sentiment reflects this, with CME FedWatch indicating a 95% probability of a rate cut at the September meeting, a substantial increase from 38% just a week prior.
The upcoming Jackson Hole Economic Symposium, a significant event where the Fed chair often signals policy shifts, will be closely watched. Jerome Powell’s keynote speech is expected to provide further clarity on the central bank’s intentions.
Bitcoin’s price increase of 2% in the last 24 hours, reaching $117,500, mirrors gains in other cryptocurrencies. Ether (ETH) is up 5% to $3,867, and XRP has risen 3.4% to $3.10. This positive trend extends to traditional markets, with gold up 1% to $3,468 per ounce and the dollar experiencing a modest decline. Major stock market indices, however, show mixed results. The interplay between these factors highlights the interconnectedness of global financial markets and the sensitivity of cryptocurrency prices to macroeconomic shifts and policy decisions.
