Bitcoin prices are on the move again, breaking out to two-week highs as the market digests dovish signals from the Federal Reserve and buzzes with speculation over a major announcement regarding U.S. crypto policy, potentially led by former President Donald Trump.

Bitcoin Climbs Near $87K After Fed Holds Rates Steady

On March 20, Bitcoin (BTC) rallied to $87,450 on Bitstamp, marking its highest level in the past two weeks. The leading cryptocurrency is now consolidating around $86,000, up 13% from last week's lows near $76,500, according to data from Cointelegraph Markets Pro and TradingView.

The bullish momentum came in the wake of the Federal Reserve's latest policy meeting, where officials decided to hold interest rates steady. More importantly, the Fed signaled two potential rate cuts by the end of 2025, reinforcing investor hopes for a more accommodative monetary environment.

Fed Chair Jerome Powell struck a cautiously optimistic tone, stating that inflation had "eased significantly" and that there was no urgency to adjust rates.

“We do not need to be in a hurry to adjust our policy stance, and we are well-positioned to wait for greater clarity,” Powell explained during his post-meeting press conference.

This "wait-and-see" approach eased pressure on risk assets across the board. The S&P 500 closed 1% higher on the day, adding a staggering $500 billion to its market cap. Bitcoin followed suit, surging alongside traditional equities.

Arthur Hayes Hints at More Upside for Bitcoin

Former BitMEX CEO Arthur Hayes weighed in on the market reaction, suggesting that the Fed's dovish stance was a green light for risk-on assets like Bitcoin. In his usual no-nonsense style on X (formerly Twitter), Hayes wrote:

“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… Was $BTC $77k the bottom? Prob. But stonks prob have more pain left to fully convert Jay to team Trump so stay nimble and cashed up.”

Hayes hinted that the Fed’s shift from Quantitative Tightening (QT) to Quantitative Easing (QE) could be imminent. Such a policy pivot could unleash another wave of liquidity into markets—a potential boon for Bitcoin bulls.

Trump-Linked Crypto Rumors Fuel Market Anticipation

But it's not just central bank policy moving the needle. The crypto space is buzzing with speculation over a major U.S. crypto policy announcement, possibly linked to former President Donald Trump.

According to The Kobeissi Letter, a well-known market analysis resource, March 21 could bring a significant update on the country's evolving crypto strategy.

“This would be his first major update since March 6, when the national crypto reserve was established,” Kobeissi summarized on X. “Rumors state President Trump may be making a significant change to his strategy.”

Earlier this month, Trump signed an executive order establishing a Strategic Bitcoin Reserve, aimed at bolstering the U.S.'s position in the digital asset space. However, initial market reactions were muted when it was revealed that the reserve did not involve direct Bitcoin purchases by the U.S. government.

Still, insiders suggest that Trump’s upcoming announcement could include more aggressive measures—potentially supporting broader Bitcoin adoption or regulatory clarity for digital assets in the U.S.

Bitcoin Breaks Resistance: Is a Full Trend Reversal Coming?

Technical analysts are also turning bullish. Popular trader Rekt Capital noted that Bitcoin’s recent daily close above key resistance levels might be signaling a deeper trend reversal.

“Bitcoin only needs to rally an additional +8% to position itself for a reclaim of the range above and end this downside deviation,” Rekt Capital explained. “Is that a lot, considering BTC is already up almost +13% since last week's lows?”

If Bitcoin clears this next hurdle, many believe it could re-enter its broader bull range, with targets above $90,000 in sight.

Broader Market Context: Institutional Interest and ETF Inflows

Bitcoin’s rally comes amid renewed institutional interest in crypto. Recent data from CoinShares shows digital asset investment products saw $500 million in net inflows over the past week, driven largely by spot Bitcoin ETFs in the United States.

Notably, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) continue to attract significant capital, underscoring growing mainstream acceptance of Bitcoin as a legitimate asset class.

Meanwhile, open interest in Bitcoin futures has cooled off, falling by $10 billion over the last two weeks, according to Coinglass. This "deleveraging" has likely reduced excess speculation, setting the stage for a healthier, more sustainable uptrend.

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