Bitcoin surged towards $86,000 following the Federal Reserve’s announcement to maintain current interest rates. The Fed’s revised outlook for economic growth and expectations of two rate cuts in 2025 have generated optimism in both cryptocurrency and equities markets, contributing to Bitcoin’s price rally.

On March 19, Bitcoin (BTC) experienced a bullish trend as traders anticipated the release of the Federal Open Market Committee (FOMC) minutes and a subsequent press conference by Federal Reserve Chair Jerome Powell. Traders monitor these events closely to gauge the Federal Reserve’s perspective on the U.S. economy and its monetary policy intentions.

During the press conference, Chairman Powell announced that the Federal Reserve would maintain interest rates within the target range of 4.25% to 4.5%, where they have remained since December 2024. While the Fed revised its outlook for economic growth downwards and highlighted persistent inflation as a challenge, their statements largely met market expectations.

Traders in both the cryptocurrency and equities markets have been predicting a shift away from the Fed’s contractionary monetary policy. The FOMC minutes confirmed a decision to decrease the monthly redemption cap on Treasury securities from $25 billion to $5 billion. Following this news, Bitcoin’s price surged, reaching an intraday high of $85,950.

The DOW Jones Industrial Average rallied by 400 points, and the S&P 500 index gained 77 points. Furthermore, the Fed’s indication of two planned rate cuts in 2025 aligns with the expectations of cryptocurrency traders and may support Bitcoin’s current upward momentum.

In conclusion, Bitcoin’s price improvement following the Federal Reserve’s recent monetary policy announcements signals positive market sentiment. The Fed’s decision to keep interest rates steady and the reduction of Treasury security redemption caps aligns with expectations, suggesting a favorable environment for continued recovery in cryptocurrency prices. As such, active observation of these economic indicators remains essential for traders and investors alike.

Original Source: www.tradingview.com

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