Bitcoin Price Hits Two-Week Highs Amid Trump Crypto Speculation

Currently consolidating near $86,000, Bitcoin has benefitted from a fairly cool Federal Reserve meeting the day prior, where officials opted to hold interest rates at current levels. Policymakers confirmed that they envisage two cuts by the end of 2025, with Fed Chair Jerome Powell describing inflation as having “eased significantly.”

Federal Reserve’s Impact on Bitcoin

In his remarks before a press conference that followed the rates decision, Powell stated, “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 “wait-and-see” approach was enough to relieve troubled risk assets, with Bitcoin joining US stocks in surging and finishing the day higher. The S&P 500 ended up by around 1% for the March 20 session, adding $500 billion in market cap.

Market Reactions and Predictions

“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,” he noted in a characteristic X post, referring to officials rotating from quantitative tightening to quantitative easing. Bitcoin traders, however, were more focused on a potential change in US crypto posturing, as whispers suggested that an announcement could come on March 21.

Trump’s Influence on Bitcoin Market

This would be Trump’s first major update since March 6th, when the national crypto reserve was established. Trading resource The Kobeissi Letter mentioned in an X post, “When Trump signed an executive order to create a Strategic Bitcoin Reserve earlier this month, markets reacted strongly.” It emerged that the plan would not necessarily involve the US buying BTC, which left traders speculating on the implications.

Technical Analysis of Bitcoin’s Price Movement

“Bitcoin only needs to rally an additional +8% to position itself for a reclaim of the Range above and end this downside deviation,” noted popular trader and analyst Rekt Capital. This technical analysis indicates that Bitcoin is on the verge of a significant breakout, contingent on market sentiment and external factors.

Investment Considerations

While the current market dynamics are promising, it is essential to remember that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Conclusion

As Bitcoin continues to consolidate near $86,000, the interplay between Federal Reserve policies and potential announcements from Trump regarding cryptocurrency could significantly influence market trends. Investors and traders alike are advised to stay informed and prepared for potential volatility in the coming days.