Bitcoin surged past $85,000 on March 19, marking its highest price this month, as the Federal Reserve’s decision to slow its quantitative tightening (QT) program injected optimism into the market. The Fed’s pivot, confirmed during its March 19 meeting, effectively eased liquidity conditions and acted as an indirect rate cut, prompting a relief rally across risk assets. Analysts highlighted the slowdown in QT, set to begin in April, as a bullish signal for Bitcoin, with improved dollar liquidity potentially stabilizing its upward trajectory.
The rally gained momentum as institutional interest continued to rise. Asset managers like BlackRock have urged clients to increase crypto exposure, while regulatory shifts under former U.S. President Donald Trump’s administration—including pro-crypto appointments at the SEC—have signaled a friendlier environment for digital assets. Historical patterns, such as Bitcoin halving cycles, also remain pivotal. The next halving in 2026 is expected to reduce new supply, amplifying scarcity-driven demand, with past cycles triggering multi-year bull runs.
Regulatory clarity and growing adoption of Bitcoin ETFs further underpin the bullish case. U.S. spot Bitcoin ETFs have already attracted billions in inflows, with Galaxy predicting these funds could surpass $250 billion in assets under management by 2025. This institutional foothold, combined with Bitcoin’s role as a hedge against macroeconomic uncertainty, positions the cryptocurrency to test $100,000. Analysts at Galaxy forecast Bitcoin could reach $150,000 in the first half of 2025, potentially climbing to $185,000 by year-end if market momentum holds.
However, technical indicators suggest caution. While Bitcoin reclaimed key moving averages, resistance in On Balance Volume (OBV) highlights lingering uncertainty. Options traders remain cautiously optimistic, with market sentiment hinging on sustained buying pressure in the coming weeks.
Sources:
https://www.investing.com/analysis/2-key-catalysts-that-could-fuel-bitcoins-next-bull-run-beyond-100k-200655243
https://www.galaxy.com/insights/research/crypto-predictions-2025/
