Bitcoin Hits Two-Week Highs as Market Awaits US Crypto Policy Update

On March 20, Bitcoin (BTC) soared to two-week highs amid speculation that the U.S. government might be on the verge of announcing a significant update to its cryptocurrency policy.

Federal Reserve's Impact on Markets

According to data from Cointelegraph Markets Pro and TradingView, BTC/USD reached nearly $87,500 on Bitstamp before settling around $86,000. This surge followed a relatively stable Federal Reserve meeting where officials decided to maintain interest rates.

During the meeting, policymakers expressed a cautious outlook, suggesting they foresee interest rate cuts in the future. Fed Chair Jerome Powell noted that inflation has “eased significantly,” and indicated, “We do not need to be in a hurry to adjust our policy stance and we are well-positioned to wait for greater clarity.”

This cautious stance provided relief to troubled assets, enabling Bitcoin to rise alongside U.S. stocks, which ended the day on a positive note. The S&P 500 saw an increase of about 1% on March 20, contributing to an additional $500 billion in market capitalization.

Arthur Hayes, the former CEO of crypto exchange BitMEX, commented that the Fed's message served as a signal for traders to embrace more risk. He remarked, “JAYPOW delivered, QT basically over April 1. The next thing we need to get bulled up for real is either an SLR exemption or a restart of QE.” He further speculated on Bitcoin's positioning, suggesting that it may have found its bottom at around $77,000 but warned that equities might still face challenges ahead.

Market Focus on US Crypto Announcement

Investor attention has shifted toward a prospective announcement regarding U.S. crypto policy, rumored to occur on March 21. This could mark President Trump's first major update since the establishment of the national crypto reserve on March 6.

Market reports indicated that Trump might be making significant shifts in his crypto strategy. When he previously signed an executive order to create a Strategic Bitcoin Reserve, the reaction was relatively muted, as it became clear that the plan wouldn’t necessarily involve the U.S. government purchasing Bitcoin.

Nonetheless, with recent closing prices surpassing key resistance levels, there is growing optimism among traders. Analyst Rekt Capital noted that "Bitcoin only needs to rally an additional +8% to reclaim its previous range and end this downside deviation," despite Bitcoin already experiencing a notable increase of approximately +13% since last week's lows.

This article does not contain investment advice or recommendations. All investments and trading carry risks, and readers should conduct their own research before making any decisions.

Bitcoin, Crypto, Markets