Bitcoin surged to nearly $87,500 on March 20, hitting a two-week high after the U.S. Federal Reserve opted to hold interest rates steady. The decision sent risk assets soaring, with Bitcoin joining U.S. stocks in rallying. Fed Chair Jerome Powell stated that inflation had “eased significantly” and reaffirmed expectations for two rate cuts by the end of 2025.
Former BitMEX CEO Arthur Hayes called the move a key signal for traders. In a post on X, he wrote, “JAYPOW delivered, QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE.”
Traders Await Major U.S. Crypto Policy Update
Now although the Fed’s decision boosted Bitcoin, traders are now focused on potential U.S. crypto policy changes. According to The Kobeissi Letter, rumors suggest that a major announcement could come on March 21, potentially from former President Donald Trump.
“This would be his first major update since March 6th, when the national crypto reserve was established,” The Kobeissi Letter stated.
Bitcoin is already up 13% since last week’s lows, and analysts like Rekt Capital think another 8% rally could push BTC into a new price range. If Trump’s announcement favors crypto, this rally may just be getting started.
At the time of writing, Bitcoin is sitting at $85,857.
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