Weekly Wire | Crypto Market Surges as Bitcoin Hits $88K Amid Fed Signals

Bitcoin Hits $88K Amid Fed Signal Rally

Over the past week ending March 24, 2025, the cryptocurrency market demonstrated notable resilience amidst shifting economic and regulatory landscapes. Bitcoin (BTC) surged to $88K, driven by the U.S. Federal Reserve’s dovish signals, including potential rate cuts that could ease pressure on risk assets. Altcoins rallied alongside BTC, with XRP gaining nearly 6% WoW, Ethereum (ETH) climbing 10%, and Solana (SOL) up 13%. This momentum coincided with a reversal in Bitcoin ETF outflows, as daily net inflows resumed last week, signaling renewed investor confidence. BTC ETFs recorded over $740M in inflows, as noted by Bitcoin ETF Flow (US$m) – Farside Investors. However, macroeconomic uncertainties, including upcoming U.S. trade tariff talks under President Trump, could temper gains if sentiment takes a hit.    

Regulatory developments added another layer of complexity to the week. The SEC’s crypto task force held its first public roundtable, exploring how securities laws intersect with digital assets. This signals an evolving regulatory framework that could either accelerate or hinder crypto growth, depending on the outcomes. On the global stage, the IMF updated its balance of payments standards to incorporate crypto provisions for the first time, hinting at growing institutional acceptance that may stabilize markets in the long run.  

Despite these developments, the market’s optimism remains cautious. Bitcoin’s Fear and Greed Index is still locked in “fear” territory, reflecting lingering investor uncertainty. The question now is whether this rally has staying power or if it’s just a temporary bounce before the next potential downturn. 

Financial Advice Disclaimer: Nothing in this article constitutes professional or financial advice, performance data or any recommendation that any specific cryptocurrency, portfolio, index, investment product, transaction or investment strategy is suitable for any specific person. You assume the sole responsibility of evaluating the merits and risks associated with all financial decisions and should seek the advice of a registered financial advisor when in doubt.