Bitcoin has surged past the $85,000 mark once again, fueled by shifting Federal Reserve policies and renewed institutional confidence. The cryptocurrency climbed to $85,038 on March 17, 2025, reclaiming a key psychological threshold after weeks of volatility. Analysts attribute the rally to the Fed’s decision to maintain interest rates at 4.25%-4.50% and adjust its quantitative tightening (QT) strategy, which now reduces the pace of Treasury securities runoff from $25 billion to $5 billion monthly starting in April. This monetary stability has bolstered risk assets like Bitcoin, while institutional investors poured $512 million into Bitcoin ETFs over three consecutive days—the first sustained inflow since January.
Large-scale Bitcoin transactions exceeding $100,000 surged by 40% to $42.9 billion, signaling renewed “whale” activity. Market optimism further strengthened after the SEC dropped charges against Ripple and amid broader expectations of regulatory clarity under potential pro-crypto U.S. policies. Analysts warn, however, that macroeconomic risks such as persistent inflation and geopolitical tensions remain headwinds.
Looking ahead, traders are speculating whether Bitcoin can breach the $90,000 resistance level. Market observers point to historical patterns and growing institutional adoption as catalysts for further gains, with some predicting a test of $100,000 if macroeconomic conditions stabilize. Federal Reserve projections of 50 basis points in rate cuts later this year could ease borrowing costs and support risk appetite.
Sources:
https://cryptomus.com/blog/bitcoin-reclaims-85k-will-it-recover-to-90k-news
https://www.kanalcoin.com/bitcoin-surges-past-85000/
https://www.ainvest.com/news/bitcoin-surges-20-85-000-fed-policy-market-rally-2503
https://tradingeconomics.com/united-states/interest-rate
https://www.coindesk.com/sitemap/1
