Cryptocurrencies Rally as Bitcoin Surpasses $86,000
After the Federal Reserve decided to keep interest rates unchanged, the cryptocurrency market, like Wall Street, calmed down amid signals of potential rate cuts in 2025.
On Thursday, March 20, most cryptocurrencies were trading higher following the Fed’s decision. In this context, Bitcoin rose more than 2.2%, reaching $86,000 according to Binance, while Ethereum dropped 1.4% to $2,000. Among the biggest gainers, SUI led with a 3% increase, followed by Bitcoin and Binance Coin, both up 2.3%.
On Wednesday, the U.S. central bank held interest rates steady as expected, keeping them within the 4.25%-4.50% range. Additionally, it reaffirmed its plan for two rate cuts this year, in line with its December meeting projections.
According to its forecasts, rates are expected to fall to 3.9% in 2025, a 50-basis-point drop from the 4.4% projected for 2024.
Potential U.S. Recession
With concerns about a potential U.S. recession, Robbie Mitchnick, Head of Digital Assets at BlackRock, suggested that such a scenario could benefit Bitcoin. In an interview with Yahoo Finance, he stated, “I don’t know if there will be a recession or not, but a recession would be a strong catalyst for Bitcoin.”
Market sentiment was bolstered by the Fed’s indication that no drastic monetary policy changes are expected, providing relief to sectors like cryptocurrencies, which are seeing mostly positive movements this Thursday.
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