Bitcoin Surges Past $85,000 as Federal Reserve Signals Stealth Easing

On March 20th, COINOTAG reported that the Federal Reserve has opted to maintain its current benchmark interest rate, while also announcing a deliberate slowdown in its balance sheet reduction set to commence in April. This strategic move has been interpreted by market participants as a form of “stealth easing“, which is poised to improve market liquidity significantly. The Fed’s nuanced approach, characterized as a “wait-and-see but dovish” signal, has heightened expectations for a potential interest rate cut, subsequently propelling risk assets higher. Bitcoin, in particular, has rallied, surging past $85,000 to reach its highest point in recent weeks. According to Bitunix Analysts, the cryptocurrency sees a short-term support level at $83,000; if breached, it could test critical support at $80,500. Meanwhile, the key resistance level stands at $87,000, which, if broken, could further challenge the $90,000 threshold. Given the current increased market volatility, adopting a buy-low-sell-high strategy may be wise. Investors are encouraged to remain adaptable to ongoing market changes.