Following the March FOMC meeting, the US Federal Reserve kept interest rates between 4.25% and 4.5%. This move was widely expected, with CME data showing a 98% probability of no change.

While stable rates often create uncertainty for crypto markets, the FOMC announced plans to slow its balance sheet runoff starting April 1. This adjustment could introduce more liquidity into the financial system through quantitative easing, creating a favourable environment for Bitcoin and other digital assets.

Increased liquidity often strengthens investor confidence, increasing capital flowing into the crypto market. According to LSEG estimates, US interest rate futures anticipate a 56-point cut in 2025 following the Fed’s decision. However, uncertainty remains, as four Federal Reserve officials predict no rate cuts next year, which could weigh on crypto prices.

Investors are still assessing the Fed’s stance on future policy direction. Many will closely follow Fed Chair Jerome Powell’s upcoming speech for hints on whether the central bank leans toward hawkish or dovish strategies.

Bitcoin Climbs to $87K as Market Reacts to Fed’s Decision

Following the FOMC meeting, Bitcoin’s price surged to $87,000 despite the Fed’s decision to keep interest rates unchanged. Traders remain bullish, signalling confidence in further price increases for BTC ($90,002.00).

Technical analysis highlights a strong bullish trend. Crypto analyst Titan of Crypto pointed out that Bitcoin’s daily chart forms a right-angled descending broadening wedge, a pattern often preceding additional gains.

Currently, Bitcoin is trading at $85,656.16, reflecting a 3.28% increase in daily value. Over the past week, BTC has gained 2.6%, indicating that bulls are regaining momentum. Bitcoin could break past the $95,000 mark in the near term if this upward trajectory continues.

FOMC’s Impact on Ethereum, XRP ($2.02), and Altcoins

The FOMC meeting also influenced major altcoins like Ethereum and XRP. While traders scaled back derivatives activity, key indicators suggest that these assets stabilise and may recover.

Ethereum’s price climbed 5% to $2,020.16, with analysts forecasting a potential move toward $4,000 in a highly bullish scenario. On-chain data reveals a decline in exchange reserves, suggesting that whales accumulate ETH ($3,099.12) in cold wallets. This accumulation could further support a price increase.

XRP traders reduced their derivatives exposure, but on-chain activity surged. Data shows an increase in active addresses, signalling renewed market participation. XRP’s price could rise by 8%, potentially testing resistance at $2.56. The Relative Strength Index (RSI) also trends upward, supporting a bullish breakout.

Read also: Dogecoin’s Road to $1, $5, and $10: Potential Timelines and Key Catalysts

What’s Next for the Crypto Market?

Investors are now watching the upcoming FOMC minutes and Jerome Powell’s comments for insights into future interest rate decisions. Bitcoin’s response to the Fed’s stable rate decision suggests that optimism remains high.

Expectations of two rate cuts in 2025 could further boost Bitcoin’s price, supporting a continued market rally. The Fed’s announcement to slow quantitative tightening (QT) is another bullish factor, as it reduces the monthly Treasury securities redemption cap from $25 billion to $5 billion.

If economic conditions remain favourable, the crypto bull run could extend further. Traders will closely monitor market trends to identify the industry’s next major move.

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