The %Cryptocurrency market witnessed a notable upswing today, March 20, 2025, following the conclusion of the Federal Open Market Committee (FOMC) meeting. As the Federal Reserve announced its decision to maintain interest rates at the current range of 4.25%–4.50%, investors in risk assets, including %Bitcoin (CRYPTO: $BTC) and XRP (CRYPTO: $XRP), reacted positively. The steady monetary policy stance, combined with specific developments in the XRP ecosystem, has fueled a bullish sentiment, driving prices higher in the hours following the announcement.
Bitcoin Breaks $87,000: A Two-Week High
Bitcoin, the leading cryptocurrency by market capitalization, surged to a two-week high, reaching $87,421 earlier today before settling around $85,800 as of 2:59 PM PDT. This represents a 2.6% increase over the past 24 hours, with trading volume spiking by 61% to $37.19 billion. The FOMC’s decision to hold rates steady, contrary to some expectations of a potential cut, appears to have provided a sense of stability for risk-on assets like BTC. While the Fed did not signal immediate rate cuts, the absence of a hawkish shift—such as a rate hike—seems to have reassured crypto investors.
Analysts suggest that Bitcoin’s price action reflects a market that was braced for volatility but found relief in the Fed’s neutral stance. The cryptocurrency had been hovering around $84,000 earlier this week, with traders closely watching for cues from Fed Chair Jerome Powell’s post-meeting press conference. Powell’s remarks, which emphasized a data-driven approach to future policy decisions amid cooling inflation, may have bolstered confidence that rate cuts could still materialize later in 2025. This optimism propelled BTC past the critical $85,000 resistance level, with some market observers now eyeing $90,000 as the next psychological target.
XRP Outpaces the Pack with a 10% Pump
While Bitcoin’s gains were impressive, XRP stole the spotlight with a remarkable 10% surge in a matter of minutes following a significant legal development. Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) had dropped its long-standing lawsuit against the company, a case that had loomed over XRP’s price trajectory for over four years. This news, coinciding with the FOMC outcome, sent XRP soaring, with prices climbing from around $2.27 to above $2.50 in intraday trading.
The resolution of the SEC lawsuit removes a major overhang that had suppressed XRP’s value and adoption potential. Posts on X highlighted XRP as the “top performer among larger-cap alts” today, with its gains outpacing those of %Ethereum (CRYPTO: $ETH) and %Solana (CRYPTO: $SOL), which rose by approximately 3.5% and 7%, respectively. The combination of a stable macroeconomic outlook from the FOMC and the lawsuit’s dismissal has reignited bullish momentum for XRP, with some analysts predicting a push toward its 2025 high of $3.40 if the rally sustains.
Market Context and Sentiment
The broader crypto market also reflected a bullish reversal, with the total market capitalization climbing to $2.81 trillion, a 1.09% increase over the past 24 hours. Bitcoin’s dominance stood at 60.7%, underscoring its role as a market bellwether, though %Altcoins like XRP demonstrated stronger relative gains. Gold, often seen as a competing safe-haven asset, hit a new high above $3,050, suggesting that investors are diversifying across both traditional and digital assets amid macroeconomic uncertainty.
Sentiment on X and other platforms paints a picture of cautious optimism. Traders noted that the Fed’s decision to maintain rates, while not the dovish rate cut some had hoped for, avoided a worst-case hawkish scenario that could have triggered a sell-off. For XRP, the SEC news was a clear catalyst, with one user commenting, “Crypto’s loving this FOMC limbo!” The Crypto Fear and Greed Index, while still at a relatively low 23 earlier this week, may see an uptick as confidence grows.
What’s Next for BTC and XRP?
Looking ahead, Bitcoin’s ability to hold above $85,000 will be critical. A close above the 200-day Exponential Moving Average (around $85,496) could signal further upside toward $90,000, supported by technical indicators like the Relative Strength Index (RSI), which has shown bullish divergence recently. However, a failure to maintain this level might see BTC retreat to the $81,000–$84,000 range, especially if broader market risk appetite wanes.
For XRP, the path forward looks particularly promising. With the SEC cloud lifted, attention now turns to Ripple’s ongoing initiatives, such as its RLUSD %Stablecoin and potential inclusion in a U.S. strategic cryptocurrency reserve proposed by President Trump. If XRP breaks above its 50-day EMA at $2.50, it could target $2.72 or even $3.40 in the near term. Conversely, a pullback below $2.27 might test support at $1.96, though current momentum suggests buyers are firmly in control.
The FOMC meeting on March 20, 2025, has proven to be a pivotal moment for BTC and XRP, albeit for different reasons. Bitcoin’s rally reflects a market buoyed by macroeconomic stability, while XRP’s explosive gains highlight the power of fundamental catalysts in the crypto space. As the dust settles, investors will be watching closely to see if these gains mark the start of a sustained uptrend or a fleeting reaction to today’s events. For now, the crypto community has reason to celebrate a day of green candles and renewed hope.
