Nearly every crypto investor is celebrating today as Bitcoin smashed through the $85,000 barrier on March 20, 2025. The world’s leading cryptocurrency surged 3.8% in just 24 hours, hitting a 10-day high of $85,880 before settling at $85,132. Not too shabby for a digital asset some critics once dismissed as worthless.
The rally coincides with the Federal Reserve‘s latest monetary policy announcement. The Fed kept interest rates steady at 4.25%-4.50% but signaled a gentler approach moving forward. They’re projecting two 25 basis point cuts this year, with their dot plot suggesting a total 50 basis point reduction. They’re also easing up on their balance sheet diet, dropping the monthly Treasury redemption cap from $25 billion to a mere $5 billion starting April.
Translation: money’s getting looser.
Technical indicators are looking up too. Bitcoin reclaimed its 200-day exponential moving average, though it faces resistance in the $85,000-$86,000 range. Support looks solid around $80,000-$81,000. This key $84,000-$85,000 zone could determine whether Bitcoin pushes toward $90,000 or retreats to $73,500 support. The RSI might be the party pooper here – it’s been in a downtrend since November 2024. But a break in that pattern could send prices higher.
Bitcoin’s technical picture strengthens as it reclaims key moving average, but that stubborn RSI downtrend needs breaking before the real fireworks start.
The big money is flooding back in. Spot Bitcoin ETFs recorded $209.1 million in net inflows on March 19, marking four straight days of positive flows. March 17 saw the largest inflow since February 4 at $274 million. Wall Street suits are buying again. Surprise, surprise.
Market sentiment has improved dramatically. The Crypto Fear and Greed Index jumped 17 points to 49, moving from “Fear” to “Neutral.” Short positions got crushed with $258 million in liquidations out of a total $355 million. Bitcoin’s climb has been accompanied by a surge in its market capitalization to $1.69 trillion, reflecting growing investor confidence. This market cap figure is calculated by multiplying Bitcoin’s current price by its circulating supply of approximately 19.9 million coins.
Industry heavyweights are making bold predictions. Anthony Scaramucci sees $170,000 within a year. Cathie Wood’s still pushing her $1 million target. Tom Lee? He’s talking $150,000 short-term and $500,000 within five years.
The wider crypto market is riding the wave too, with the total market cap hitting $2.91 trillion. Altcoins are surging alongside Bitcoin. Bullish much?
