Bitcoin Extends Rally After Fed Policy Meeting
Bitcoin surged 1.3% to $105,134 on Thursday, continuing a 3.5% climb from the previous day. The price boost followed the Federal Reserve’s latest monetary policy meeting, where Chair Jerome Powell briefly addressed crypto regulation. Other digital assets, including Ether and Solana, also moved higher.
Powell Signals Regulatory Clarity for Crypto
The Federal Reserve paused monetary easing but emphasized that further rate cuts depend on inflation progress. In his briefing, Powell commented that banks can serve crypto customers if they manage the associated risks. He also stated that a stronger regulatory framework from Congress would be “very constructive.”
Market Optimism Grows Under Trump’s Pro-Crypto Stance
Powell’s measured comments come amid heightened expectations for crypto-friendly regulations under President Donald Trump. The administration’s increasing engagement with the digital asset sector has fueled investor optimism, pushing Bitcoin’s price higher.
Bitcoin Rally Shows Signs of Maturity
According to IG Australia Market Analyst Tony Sycamore, traders reacted positively to Powell’s crypto statements. However, from a technical perspective, indicators suggest that Bitcoin’s rally may be reaching a mature phase. The cryptocurrency previously hit a record $109,241 before Trump’s inauguration but later pulled back.
Institutional Interest in Crypto Expands
Wider U.S. involvement in crypto continues to grow. CME Group Inc. has introduced Bitcoin and Ether futures on Robinhood’s platform. Meanwhile, investment firms are aggressively filing proposals with the SEC for new crypto-based exchange-traded funds, including those focused on memecoins.
Bitcoin’s Correlation With Tech Stocks Increases
Bitcoin’s recent price movements have mirrored those of U.S. technology stocks. The cryptocurrency likely benefited from a rise in Nasdaq 100 futures on Thursday, as investors processed corporate earnings reports. This correlation suggests that Bitcoin is increasingly viewed as a risk asset tied to broader market sentiment.