Well, it is an eventful week in the land of digital currencies, and I wanted to share my thoughts on what's been happening.
The good news is that crypto prices are finally showing signs of life after weeks of feeling pretty gloomy. If one considers the last week, then the total value of all cryptocurrencies has risen by more than $100 billion. That's kind of like adding the value of a small country to the world of crypto!
Of course, bitcoin, the big daddy of the cryptos is leading the charge. It is up by about 5%, flirting with the $61,000 mark. We even saw a peek above $62,000 for a minute before it settled back down. That is a fairly decent move from last week when it actually worked nearby the $58,000 point.
So, what exactly is behind this uptick?
It looks like US politics is playing a big role.
Let's break it down:
Well, according to Presidential candidate Kamala Harris, she is going to foster growth in the crypto industry. But here's the thing, the 92-page plan doesn't mention "bitcoin" or "crypto" at all. So, take that for what it is.
As of recent, the independent candidate from Arizona, Robert Kennedy Jr., has dropped his bid. He is said likely to turn over and back Donald Trump. That can help boost Trump's race against Harris.
We got the big news from Jerome Powell, head of the US Federal Reserve. He said interest rates need to start coming down now, which cheered both the stock market and Bitcoin, sending prices higher.
It seems like the crypto world thinks a Trump win might be better for them than a Harris win. But remember, in politics, things can change quickly!
Inversely, one of the largest crypto exchanges out there, Binance, has begun a hiring spree in its bid to remain compliant. The exchange targets to recruit 200 new members before the end of 2024. This very clearly shows their efforts to appease regulators worldwide.
And here's a wild one: McDonald's Instagram account got hacked! Suspected hackers used their account to shill some sort of fake coin called "Grimace" (yes, like the purple character). Apparently, they were able to siphon off over $700,000 worth of Solana. It just goes to show one has got to always be cautious and double-check everything in crypto.
The focus is the US elections.
According to Tom Lee and some other experts, should Trump win the election, Bitcoin may surge. But in crypto, nothing is certain as always. Well, what does all this mean for us ordinary folk interested in crypto?
It is simply a reminder that the crypto world is related to what is happening in politics and the rest of the economy. It is no longer about the technology per se. If you're considering getting into or already have some crypto, better keep an eye out for these high-level events that can move prices materially.
Plus Always remember: Never invest more than you can afford to lose, and always do your own research.