Bitcoin and other cryptocurrencies held steady during the weekend as investors cheered Donald Trump’s and Robert Kennedy’s speeches at a major conference in Tennessee.
Trump and Kennedy are bullish on Bitcoin
In their speeches, the two presidential candidates vowed to protect Bitcoin if elected in November. Most importantly, they said they would build Bitcoin reserves for the US government. Such a move would mirror the government’s gold holdings.
To be clear, the US government is still one of the biggest Bitcoin holders in the world. Data by BitcoinTreasuries show that the government holds over 213,000 coins, currently valued at $13.6 billion.
The government could decide to move these coins to the Federal Reserve or sell them as Germany did in July.
Other tokens reacted well to Trump’s speech. Bitcoin Cash price rose to $421 on Monday morning, its highest point since June 14th, while Justin Sun’s Tron (TRX) rose to $0.14, just a few points below its all-time high of $0.145. JasmyCoin (JASMY) and Kaspa rose to $0.032 and $0.20, respectively.
Federal Reserve and top corporate earnings
These tokens will have two main catalysts this week. First, they will react to the upcoming earnings of some of the biggest American companies, such as Microsoft, Apple, Meta Platforms, and Amazon.
These earnings will most likely impact Wall Street, as we saw last week when Tesla and Google published their numbers, leading to a deep dive.
If the earnings are good, chances are that Wall Street stocks will jump. In some instances, a vibrant Wall Street leads to positive outcomes in the crypto market.
The other big event this week will be the Federal Reserve, which will deliver its interest rate decision on Wednesday. This decision will happen a few days after the US published encouraging Q2 GDP data that showed that the economy expanded by 2.8% after growing by 1.3% in Q1.
The US also released an encouraging personal consumption expenditure (PCE) report, which confirmed that inflation was falling.
Therefore, the Federal Reserve is expected to leave rates unchanged and hint that it will start cutting rates in its September meeting.
If this happens, cryptocurrencies like Bitcoin, BCH, Tron, Jasmy, and Kaspa will likely continue their recovery. A key catalyst for this trend is that investors have allocated over $6 trillion in money market funds to benefit from the 5.5% Fed rates.
As such, some of these investors will now move to riskier assets like stocks and cryptocurrencies when the Fed starts to unwind its interest rates.
