Bitcoin Price Surges to $85,950 After FOMC Minutes Release: What’s Next?

Bitcoin Price Surge Explained: What the FOMC Minutes Mean for Crypto

Bitcoin price action turned bullish on March 19 as market sentiment shifted ahead of the Federal Open Market Committee (FOMC) minutes release and a press conference by Federal Reserve Chair Jerome Powell. Traders closely monitor these events for insights into the Federal Reserve’s economic outlook, particularly regarding US economic health and future monetary policy decisions, including interest rates.

In his press conference, Powell confirmed that the Federal Reserve plans to maintain interest rates in their current target range of 4.25% to 4.5%, where they have remained since December 2024. Although the Fed downgraded its economic growth forecast and reiterated that tackling inflation is still a significant challenge, the tone of the statements largely matched the market’s expectations.

Impact of the Fed’s Quantitative Tightening (QT) Policy

Crypto and equity traders had been anticipating a change in the Fed’s quantitative tightening (QT) policy, and the FOMC minutes confirmed this, revealing plans to reduce the monthly redemption cap on Treasury securities from $25 billion to $5 billion. This adjustment is seen as a signal that the Fed may ease some of the stringent measures it has used to control inflation.

In reaction to these announcements, Bitcoin’s price surged, reaching an intraday high of $85,950 at the time of writing. Meanwhile, the Dow Jones Industrial Average added 400 points, and the S&P 500 gained 77 points, reflecting positive investor sentiment across the broader market.

Powell’s comments about the possibility of two additional rate cuts in 2025 have aligned with expectations from crypto traders, further fueling optimism in the market. As a result, Bitcoin’s ongoing recovery appears to be gaining momentum, supported by a favorable macroeconomic backdrop.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.