Bitcoin Climbs to $87,000: What’s Fueling the Rally?

The Federal Reserve opted to maintain its key interest rate, yet Jerome Powell’s statements left room for an optimistic outlook. Market fluctuations during the announcement were relatively subdued, but soon after, Bitcoin’s price spiked, reaching $87,000.

Currently, Bitcoin is trading slightly above its previous resistance at $85,000, suggesting that the level may have been tentatively broken.

The Fear and Greed Index has ticked up to 31, hinting at growing optimism among traders. This is the highest reading since early March 2025, when the current market correction first began.

However, the Altseason Index remains static at 21, reinforcing Bitcoin’s dominance, with its market share holding steady at 60.7%.

Institutional investors, meanwhile, are staying cautious. CoinGlass reports that net inflows into U.S. spot Bitcoin ETFs on March 19, 2025, amounted to only $11.8 million. Several funds, including BlackRock’s iShares Bitcoin Trust ETF (IBIT), saw no inflows at all.

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U.S. Crypto Regulation in Flux

Speculation is heating up around possible major reforms in U.S. cryptocurrency regulation. Early leaks suggest that President Donald Trump is working on “significant updates” to federal policies on digital assets. While the specifics remain under wraps, traders and investors are anticipating a shift that could have a profound impact on the market.

The last big move from Washington in this space was on March 6, 2025, when the president announced the formation of a strategic Bitcoin reserve. With that, and a neutral-to-positive takeaway from the recent Federal Reserve meeting, some analysts argue that the $77,000 level may have been a local bottom—potentially paving the way for a price rebound or a period of consolidation.

Arthur Hayes, co-founder of the crypto exchange BitMEX, believes Bitcoin's price will remain stable unless the Federal Reserve unexpectedly alters its policy stance. Without such a shift, he sees little reason for a further decline.

Analyst Jamie Coates shares this outlook, noting that with the Fed's quantitative tightening (QT) winding down and Treasury bond volatility easing, the broader liquidity environment is improving—a positive signal for Bitcoin.

The Fed meeting has taken some pressure off the market, giving traders more breathing room in the months ahead. If Bitcoin can maintain support at $85,000, a recovery to $90,000 or higher could be on the horizon.

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