What’s Driving Today’s Crypto Market Surge?
The cryptocurrency market is experiencing a notable surge today, with total market capitalization rising approximately 3.2% in the past 24 hours, reaching $2.8 trillion as of March 20. Bitcoin (BTC) and Ether (ETH) are leading the gains, rising around 3% and 4%, respectively.
Key Factors Behind Today’s Crypto Market Rally
1. Risk-On Sentiment Following Fed Decision
The crypto market’s upward momentum aligns with broader gains in U.S. equities after the Federal Reserve decided to keep interest rates unchanged at 4.25%-4.50%.
- The S&P 500 and Nasdaq rose by 1.08% and 1.4%, respectively, on March 19.
- Crypto-related stocks also benefited, with Coinbase (COIN) up 4.75% and MicroStrategy (MSTR) gaining nearly 7.4%.
- The U.S. Dollar Index (DXY) remains at its lowest levels since early November, down over 6% from its January peak.
- Markets now anticipate two Fed rate cuts by year-end, boosting investor appetite for risk assets like cryptocurrencies.
2. Expectations of Pro-Crypto Policy Announcements
Speculation around potential pro-crypto policy updates from the U.S. government is fueling optimism:
- President Donald Trump is scheduled to speak at Blockworks’ Digital Asset Summit (DAS) on March 20, marking the first time a sitting U.S. president addresses a crypto conference.
- Rumors suggest Trump may announce significant updates to his administration’s crypto strategy, following the recent establishment of a national crypto reserve.
- Trump’s previous pro-crypto stance and discussions about a Strategic Bitcoin Reserve have already boosted institutional enthusiasm, driving Bitcoin ETF inflows to record highs and pushing Bitcoin prices above $100,000 earlier this year.
3. Technical Rebound in Crypto Market
Technical indicators suggest today’s gains are part of a broader rebound from recent lows:
- The total crypto market cap bounced from a multi-month low of $2.44 trillion on March 11.
- Currently at $2.77 trillion, the market cap is approaching key resistance between $2.8 trillion and $3 trillion, marked by the 50-day and 200-day moving averages.
- A successful breakout above this resistance could signal further bullish momentum, targeting previous all-time highs around $3.20 trillion.
- The daily Relative Strength Index (RSI) has risen from near-oversold levels (31) to 47, indicating strengthening bullish momentum.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
