Bitcoin has surged toward $86,000 following the Federal Reserve's decision to maintain interest rates and plans to reduce its quantitative tightening (QT) policy. According to Federal Reserve Chair Jerome Powell, rates will remain unchanged between 4.25% and 4.5%, where they have been since December 2024. Despite a downgraded economic growth outlook and ongoing inflation concerns, the Fed's statements have aligned with market expectations. Moreover, the Fed confirmed it will lower its monthly redemption cap on Treasury securities significantly, suggesting a pivot towards easing policies. In light of these developments, Bitcoin's price rose, reaching an intraday high of $85,950, while traditional stock indices like the Dow Jones and S&P 500 also saw gains. Traders have reacted positively to the possibility of two interest rate cuts in 2025, which they believe could support further growth in crypto markets. This trend indicates a strong connection between monetary policy decisions and cryptocurrency valuations.

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