The recent rally in cryptocurrencies extended into Monday, with numerous coins and tokens experiencing significant price increases. Leading the gains were Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE), which saw price hikes of nearly 6%, 7%, and 8%, respectively, by late afternoon trading.
Crypto-Friendly Political Developments
A major catalyst for this rally was the latest Consumer Price Index (CPI) data released by the Bureau of Labor Statistics. The report showed both headline and “core” CPI figures coming in significantly below economists’ projections, suggesting a substantial decline in inflation. This development raises hopes for potential interest rate cuts by the Federal Reserve, which would be favorable for high-risk assets like cryptocurrencies.
However, the bullish momentum in the crypto market was further buoyed by a notable political event. On Monday, Republican presidential candidate Donald Trump announced U.S. Sen. J.D. Vance of Ohio as his running mate for the upcoming election. Vance, a former venture capitalist, is known for his crypto-friendly stance, having drafted legislation on crypto regulation that is considered more lenient than other proposals. During his 2022 Senate campaign, Vance positioned himself as a supporter of crypto developers and businesses.
While Vance has not yet made specific statements about cryptocurrency policy as a vice-presidential candidate, his track record suggests he would advocate for less stringent regulation of the industry if elected. This potential policy direction has provided a significant boost to market sentiment.
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