The cryptocurrency market is up at present, with the overall market capitalization rising by roughly 3.2% within the final 24 hours to succeed in $2.8 trillion on March 20. The positive factors have been led by Bitcoin (BTC) and Ether (ETH), which have risen round 3% and 4%, respectively.
Crypto market efficiency Jan. 30. Supply: Coin360
Let’s take a look at the highest catalysts driving the crypto market rebound at present.
Danger-on sentiment pushed the crypto market up
The crypto market rebound mirrors positive factors in US equities following the Fed’s choice to go away rates of interest unchanged.
The S&P 500 and the Nasdaq rose by 1.08% and 1.4%, through the late New York buying and selling session on March 19.
Crypto-related shares additionally climbed larger, with crypto trade Coinbase (COIN) rising by 4.75% and Technique (MSTR) gaining practically 7.4%.
BREAKING: The S&P 500 provides +$500 billion of market cap at present because the Fed extends their fee minimize pause for the 2nd straight assembly. pic.twitter.com/948U2U7gKe
— The Kobeissi Letter (@KobeissiLetter) March 19, 2025
The US Greenback Index (DXY) stays at its lowest ranges since early November and is down greater than 6.04% from its Jan. 13 peak of 110.17.
This comes after the Federal Open Market Committee (FOMC) assembly, which noticed the US central financial institution leave interest rates unchanged at 4.25%-4.50%, assembly market expectations.
The committee now initiatives two fee cuts by the tip of the yr.
The newest information from CME Group’s FedWatch Tool sees 16% odds of a 0.25% minimize in Could with the percentages rising to 60.1% in June.
Fed goal fee possibilities for June 18 FOMC assembly. Supply: CME Group
With merchants now pricing in the next chance of fee cuts, danger belongings, corresponding to cryptocurrencies, have seen renewed curiosity from merchants.
Professional-crypto coverage expectations
Including to the market’s upward momentum is concept that the US authorities was preparing an update to its cryptocurrency coverage.
Key takeaways:
BREAKING: President Trump will handle DAS tomorrow
That is the primary time a sitting President has addressed a crypto convention. pic.twitter.com/x3gnGP0yAN
— Blockworks (@Blockworks_) March 19, 2025
There are speculations that Trump will make main updates to his administration’s crypto insurance policies.
“This is able to be his first main replace since March 6, when the nationwide crypto reserve was established,” capital markets commentator The Kobeissi Letter said in a March 19 publish on X, including:
“Rumors state President Trump could also be making a major change to his technique.”
Trump’s current feedback about establishing a Strategic Bitcoin Reserve and his pro-crypto stance have sparked pleasure amongst traders.
Following his election, Bitcoin ETF inflows hit a record $3.4 billion per week, and Bitcoin breached the $100,000 level earlier than setting a brand new all-time high above $109,000.
This displays institutional enthusiasm for a doubtlessly crypto-friendly regulatory setting.
Mixed with the Fed’s dovish stance, this optimism has resulted in BTC worth rebounding above $85,000.
In keeping with BitMEX co-founder Arthur Hayes, “QT is basically over on April 1,” highlighting that markets ought to now concentrate on potential SLR exemption or restart of QE. Hayes believes $77,000 was the doubtless backside for Bitcoin.
JAYPOW delivered, QT mainly over Apr 1. The following factor we have to get bulled up for realz is both SLR exemption and or a restart of QE.
Was $BTC $77k the underside, prob. However stonks prob have extra ache left to totally convert Jay to group Trump so keep nimble and cashed up.
— Arthur Hayes (@CryptoHayes) March 20, 2025
Associated: US recession would be a big catalyst for Bitcoin: BlackRock
Crypto market technical rebound
Chart technicals present that the crypto market’s positive factors at present are a part of a rebound that began after the value dropped to a multimonth low of $2.44 trillion on March 11.
TOTAL crypto market cap every day candle chart. Supply: Cointelegraph/TradingView
The full market cap, at present at $2.77 trillion, seeks to interrupt above the resistance zone between $2.8 trillion and $3 trillion, the place each the 200-day and 50-day SMAs sit.
If this occurs, it could sign a bullish breakout from the present downtrend, with bulls concentrating on all-time highs round $3.20 trillion, i.e., the 100-day SMA.
In the meantime, the every day RSI has jumped from close to oversold situations at 31 on March 11 to the 47, suggesting the bullish momentum is choosing up.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a choice.
