Bitcoin Just Exploded Past Two-Week Highs, and the Reason?

A flood of speculation surrounding an imminent major crypto policy update from the U.S. government—possibly linked to Donald Trump

Bitcoin just past two-week highs, and what sparked the latest leg of the rally? A flood of speculation surrounding an imminent major crypto policy update from the U.S. government—possibly linked to Donald Trump.

As BTC surged to nearly $87,500 on March 20, traders and analysts were scrambling to decipher whether this was just a reaction to Federal Reserve policy confirmations or the beginning of a seismic shift in U.S. crypto strategy.

Fed’s Powell Paves the Way for a Bitcoin Boom

Bitcoin’s surge didn’t come out of the blue. A day prior, Federal Reserve Chair Jerome Powell had calmed markets by keeping interest rates and signaled two potential cuts by year-end. Powell’s mentioned that inflation has “eased significantly” provided relief to risk assets like crypto and stocks.

This was enough to inject confidence back into the S&P 500, which rose 1% on the same day and saw its market cap increase by a staggering $500 billion.

Former BitMEX CEO Arthur Hayes took to X (formerly Twitter) to highlight the significance of Powell’s shift in stance. He suggested that the move away from quantitative tightening (QT) could mark the beginning of a more favorable environment for Bitcoin.

“QT basically over Apr 1. The next thing we need to get bulled up for realz is either SLR exemption and or a restart of QE,” Hayes stated, hinting that further economic shifts could send Bitcoin soaring even higher.

Trump’s Crypto Plans: A Game-Changer?

However, the real driver of Bitcoin’s recent price action appears to be something even bigger—rumors that Trump’s administration is preparing a significant crypto announcement.

According to reports, an update could arrive as early as March 21, and speculation is running wild about what it might entail.

The Kobeissi Letter, a well-known trading resource, added fuel to the fire by pointing out that this would be Trump’s first major crypto update since March 6, when the controversial national crypto reserve was announced. While that initiative didn’t involve the U.S. directly purchasing Bitcoin, it still marked a shift in policy.

Now, traders are wondering: is the next move going to be even bigger?

One potential game-changer could be a shift in regulatory stance, making the U.S. more crypto-friendly and encouraging institutional adoption. Given Trump’s past remarks about digital assets and his focus on economic competitiveness, a pro-Bitcoin move could send shockwaves through the market.

Traders Eye Next Resistance Levels

Bitcoin has already broken through key resistance levels with its latest rally, and analysts are growing increasingly optimistic.

Popular trader Rekt Capital highlighted that BTC only needs to rally an additional 8% to reclaim its broader trading range and end the current downside deviation.

If Trump’s crypto announcement delivers on expectations, Bitcoin could easily surpass this threshold, potentially setting the stage for a new leg up in the bull run.

On the flip side, if the rumors fail to materialize or the update is underwhelming, BTC could see a sharp correction.

Final Thoughts

The next 24 hours could be pivotal for Bitcoin. Between the Federal Reserve’s softer stance and the potential for a massive U.S. crypto policy shift, traders are bracing for volatility.

If Trump’s administration does unveil a game-changing crypto strategy, we could be witnessing the start of an unprecedented Bitcoin rally. But if the hype turns out to be just that—hype—markets may need to recalibrate fast.

One thing is certain: all eyes are on March 21. Will Bitcoin blast off even further, or are we in for a reality check? The answer could reshape the crypto landscape for months to come.