Crypto Market Surges 10% as Tariff Fears Ease, Fed Stays Supportive

The crypto market experienced a significant rally today, with Bitcoin and Solana leading the charge. This upward momentum is primarily driven by the easing of tariff fears, which has boosted investor sentiment. The Federal Reserve's supportive policy stance has further contributed to this positive outlook, providing a favorable environment for cryptocurrencies to thrive.

Bitcoin, in particular, has shown signs of forming a bottom, with analysts suggesting that it could rebound towards the $90,000 level. This optimism is fueled by the recent shift in US President Donald Trump's stance on tariffs, which has softened his earlier rhetoric. The Federal Reserve's decision to look past short-term inflationary pressures has also contributed to this positive outlook. According to a crypto analyst, the technical indicators for Bitcoin have turned bullish, with the 21-day moving average now at $85,200. This suggests that the cryptocurrency is poised for a renewed uptrend, similar to past bull markets.

Solana, another prominent cryptocurrency, has also benefited from this market optimism. The easing of tariff fears has provided a conducive environment for Solana to rally, as investors seek to capitalize on the potential growth opportunities in the crypto market. The supportive policy stance of the Federal Reserve has further bolstered market confidence, providing a favorable environment for Solana to thrive.

The rally in the crypto market is not limited to Bitcoin and Solana. Other altcoins, such as Ether, Tron, and Avalanche, have also rebounded over the last week. This indicates that the market optimism is not confined to a few cryptocurrencies but is pervasive across the entire crypto ecosystem. The positive outlook for the crypto market is further supported by the return of inflows into US-based spot Bitcoin ETFs, which suggests that institutional investors are increasingly bullish on the prospects of cryptocurrencies.

However, despite the positive outlook, analysts caution that there is no clear catalyst for an immediate parabolic rally. The market remains under pressure due to economic uncertainties and ongoing trade war concerns. Investors are advised to exercise caution and conduct thorough research before making any investment decisions. The crypto market is known for its volatility, and sudden price movements can occur at any time. Therefore, it is essential to stay informed and make informed investment decisions.

While the news has improved sentiment, analysts warn that unexpected developments or a tougher stance from Trump could still impact markets in the coming days. Crypto expert Peter Schiff criticized Trump’s “Liberation Day” tariff plan, arguing that instead of restoring America’s wealth, it will expose the country’s deep reliance on global productivity and savings. He suggests that the U.S. is no longer as strong as it once was and that these tariffs may highlight economic weaknesses rather than solve them.

All eyes are now on two key events that could shape market sentiment in the coming days. On March 27, the Senate Banking Committee will question SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould, potentially signaling regulatory shifts. Meanwhile, Friday’s PCE reading, the Fed’s go-to inflation measure, will offer more insights into future monetary policy.

With tariff worries easing and the Fed staying accommodative, the crypto market is regaining momentum, hinting at more upside in the near term. The Federal Reserve recently updated its outlook, raising inflation expectations but sticking to its plan for two interest rate cuts this year. It also dismissed worries that tariffs would cause lasting inflation, calling the impact temporary. This has boosted confidence in riskier investments like Bitcoin.