Bitcoin Surges Past $117K as Trump Nominates Stephen Miran to Federal Reserve Board
An executive order paving the way for cryptocurrency to be included in 401(k) retirement plans is also helping boost prices on Thursday.
By Stephen Alpher
Having tumbled below $112,000 a few days ago, Bitcoin (BTC) has returned above $117,000 late in U.S. trading on Thursday, retaking the range it held for most of July.
The initial boost to the crypto market overnight came from news that President Trump intended to sign an executive order allowing crypto and other alternative assets to be included in 401(k) retirement plans. This order has now been officially signed, opening new avenues for retirement investors to access digital assets.
The push above $117,000 occurred late Thursday following the announcement of Stephen Miran's nomination to replace Andrea Kluger on the Federal Reserve's Board of Governors. Miran currently serves as chairman of the White House Council of Economic Advisers and is considered an ally of the president, likely sharing dovish views on interest rates.
Even before Miran's nomination, several Federal Reserve officials had indicated a probable rate cut at the central bank's next meeting in September, reacting to weak jobs data and soft ISM Services numbers. The CME FedWatch tool shows the probability of a September rate cut has surged to 95%, up from 38% just a week ago.
The Fed's upcoming Jackson Hole Economic Symposium, scheduled in two weeks, is expected to be a key event where Fed Chair Jerome Powell may signal important policy changes.
Alongside Bitcoin's 2% rise to approximately $117,500 in the past 24 hours, Ethereum (ETH) is up 5% to about $3,867, and XRP has increased 3.4% to $3.10.
In traditional markets, gold is up 1% to $3,468 per ounce, the U.S. dollar is modestly lower, and major stock indices show mixed performance.
Source: CoinDesk
Frequently Asked Questions (FAQ)
Bitcoin and Market Movements
Q: What caused Bitcoin's surge above $117,000?
A: Bitcoin's price surged above $117,000 due to two main factors: President Trump signing an executive order allowing cryptocurrency in 401(k) plans, and the nomination of Stephen Miran to the Federal Reserve Board, which is seen as a positive development for dovish interest rate policies.
Q: How did the executive order regarding 401(k) plans impact the crypto market?
A: The executive order, which allows for the inclusion of cryptocurrencies and other alternative assets in 401(k) retirement plans, is seen as a significant boost, opening new avenues for retirement investors to access digital assets and driving up prices.
Q: What is the significance of Stephen Miran's nomination to the Federal Reserve?
A: Stephen Miran's nomination is considered significant because he is an ally of the president and is expected to hold dovish views on interest rates, which could lead to a rate cut. This prospect of lower interest rates generally benefits risk assets like cryptocurrencies.
Q: What is the current sentiment regarding a Federal Reserve rate cut?
A: Sentiment has shifted dramatically, with the CME FedWatch tool showing a 95% probability of a September rate cut, a significant increase from 38% a week prior. This is largely in response to recent weak economic data.
Q: What is the Jackson Hole Economic Symposium and why is it important for the crypto market?
A: The Jackson Hole Economic Symposium is an upcoming event where Fed Chair Jerome Powell may signal important policy changes. Its announcements can influence market sentiment and economic outlook, impacting asset prices including cryptocurrencies.
Cryptocurrency Performance
Q: How did other major cryptocurrencies perform alongside Bitcoin?
A: In the same 24-hour period, Ethereum (ETH) saw a 5% increase to approximately $3,867, and XRP rose by 3.4% to $3.10.
Crypto Market AI's Take
The recent surge in Bitcoin and other cryptocurrencies, influenced by policy changes and potential Federal Reserve rate cuts, highlights the increasing integration of digital assets into mainstream financial planning and the broader economic landscape. At Crypto Market AI, we leverage advanced AI and machine learning to provide real-time market analysis and predictive insights that help navigate these dynamic conditions. Our platform offers tools such as AI-powered trading bots and comprehensive market intelligence reports, enabling users to make more informed investment decisions in an evolving crypto market. Explore our
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