Bitcoin’s Steady Ascent Towards $86,000
Bitcoin (BTC) is edging closer to the $86,000 mark, reflecting a positive shift in the cryptocurrency market. This comes as XRP, another major player, has surged by 10%, leading the way for overall gains in the market over the last 24 hours.
Market Reactions Following the FOMC Meeting
The upward trend for Bitcoin began during the early hours of Thursday in Asia, following the Federal Open Market Committee (FOMC) meeting on Wednesday. The Federal Reserve opted to maintain interest rates, but adjusted their growth outlook downward, projecting slower growth until 2027.
Meanwhile, Ethereum (ETH) experienced a subdued response after a sudden 7% spike on Wednesday, ultimately closing the day with a 3% increase. Other notable cryptocurrencies such as Solana (SOL), Dogecoin (DOGE), and BNB Chain’s BNB reported gains of less than 6%. However, Uniswap (UNI) made headlines with an 8% jump after token holders approved a significant $165 million funding proposal for its foundation.
XRP’s Surge Following SEC Resolution
XRP’s price soared as much as 12% before experiencing a slight correction. This surge can be attributed to Ripple Labs concluding its long-standing legal dispute with the U.S. Securities and Exchange Commission (SEC). The company announced that the case, which has been a significant obstacle for XRP, has officially come to an end.
Adding to XRP’s momentum, Bitnomial announced that it would launch futures tied to XRP for U.S. investors, marking a significant first for the region and further boosting confidence in the asset.
Trump Advocates for Interest Rate Cuts
In a related economic commentary, former President Donald Trump called for the Federal Reserve to lower interest rates amid the impending implementation of U.S. reciprocal tariffs set to begin on April 1. His national economic adviser, Kevin Hassett, also expressed expectations of a 2.5% growth rate, significantly higher than the Fed’s forecast of 1.7%.
Trump voiced his opinions on social media, stating, “The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!”
Cautious Optimism Among Traders
Despite the positive movements in the market, traders are remaining cautious about the sustainability of this rally. Many believe the current market activity may simply represent a relief bounce after five consecutive weeks of equity sell-offs.
Augustine Fan, head of insights at SignalPlus, remarked in a Telegram message, “The rally is probably a function of a relief bounce as markets steady back after 5 weeks of consecutive equity sell-offs, and traders awaiting more hard data releases to draw a firmer conclusion on the current economic trajectory.”
Echoing this sentiment, Jeff Mei, COO at BTSE, stated in an email, “Overall market sentiment has been so weak these past few weeks that even Powell’s relatively neutral speech and merely the lack of negative comments caused crypto prices to rally.”
He cautioned that while the absence of new tariff announcements may have eased market tensions, conditions could shift quickly. “We’re advising all of our clients to stay observant and vigilant through the next few weeks and months as we move through stages of volatility,” Mei concluded.
In summary, while Bitcoin and XRP are experiencing notable gains, the market remains watchful as economic indicators and geopolitical events unfold.
