Bitcoin’s price surged due to the Federal Reserve’s announcement to maintain interest rates and future rate cuts, reaching an intraday high of $85,950. The Fed’s projections align with market expectations, positively impacting both cryptocurrency and equity markets.

On March 19, Bitcoin (BTC) experienced a bullish turnaround as traders anticipated the release of the Federal Open Market Committee (FOMC) minutes and remarks from Federal Reserve Chair Jerome Powell. Market participants typically scrutinize these releases to gain insights into the Fed’s perspective on the US economy and its projections regarding monetary policy and interest rates.

During the press conference, Chair Powell confirmed that the Fed would maintain interest rates within the target range of 4.25% to 4.5%, unchanged since December 2024. Despite a downgraded outlook for economic growth and ongoing concerns about inflation, the Fed’s statements largely aligned with market expectations.

Traders in both the cryptocurrency and equity markets have been forecasting a decrease in the Fed’s quantitative tightening (QT) measures. The FOMC minutes revealed that the central bank plans to lower the monthly redemption cap on Treasury securities from $25 billion to $5 billion, further supporting market confidence.

As a result of the Fed’s statements, Bitcoin experienced a price surge, reaching an intraday high of $85,950 at the time of the report. The DOW rose by 400 points, while the S&P 500 index gained 77 points. Powell’s indication of two anticipated rate cuts in 2025 aligns with the expectations of crypto traders, potentially supporting Bitcoin’s continued upward trend.

The Federal Reserve’s decision to maintain interest rates, coupled with assurances of future rate cuts, has positively influenced Bitcoin’s price, pushing it closer to $86,000. Market participants view the Fed’s actions as aligning with their expectations, contributing to increased confidence in the cryptocurrency market.

Original Source: cointelegraph.com

Related posts:

Bitcoin Hits New All-Time High Near $77K Amid Federal Reserve Rate Cut Concerns Bitcoin Declines 4.6% After Federal Reserve’s Rate Decision and Inflation Outlook Bitcoin’s Outlook for 2025: Key Economic Influences and Trends Federal Reserve Chair Jerome Powell Emphasizes Caution on Interest Rates and Stablecoin Regulation