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Bitcoin rushes past $65K as Powell hints policy shift: Next stop $70K?

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Is Bitcoin’s surge linked to Powell’s policy shift, or is resilience the key amid volatility?

BTC surges

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  • Fed Chair Jerome Powell hints at rate cuts, fueling Bitcoin’s surge.
  • Anthony Pompliano dismisses Bitcoin volatility, highlighting resilience and growth potential.

In the wake of a dynamic cryptocurrency market surge, Bitcoin [BTC] has surged once more, reclaiming the esteemed $65,000 threshold across major spot exchanges. This resurgence swiftly followed Federal Reserve Chair Jerome Powell’s declaration that interest rates have reached their zenith, with possible reductions on the horizon.

Powell’s remarks, emphasizing the Fed’s preparedness to adjust policies in response to economic cues, have sparked investor enthusiasm, driving BTC’s value to highs.

Fed Chair signals policy shift

Addressing the Federal Open Market Committee’s (FOMC) fourth consecutive decision to maintain interest rates on 20th March, Jerome Powell, the Federal Reserve Chair, noted, 

“We believe that our policy rate is likely at its peak for this tightening cycle and that if the economy evolves broadly as expected it will likely be appropriate to begin dialing back policy restraint at some point this year,” 

He further added, 

“We are prepared to maintain the current target range for the federal funds rate for longer if appropriate.”

Powell emphasized that the future trajectory of interest rates hinges on forthcoming economic data. Despite this, he clarified that he doesn’t anticipate rate cuts returning to ultra-low levels. Lower interest rates typically favor risk-on assets like Bitcoin, explaining the recent price surge. 

However, BTC briefly dipped to around $60,900 amid concerns about significant outflows from Bitcoin exchange-traded funds (ETFs).

Market participants were also wary of the Fed’s stance on future rate cuts. Some traders hedged their positions, anticipating a potentially more hawkish tone from Powell. However, with the outlook for rate cuts now appearing stable, BTC has surged to new highs.

Resilience amid volatility

Seeing this sudden volatility in Bitcoin’s price Anthony Pompliano, founder of Pomp Investments, dismissed concerns by dubbing it “a pullback for ants.” Speaking on Bloomberg, Pompliano provided insights into Bitcoin’s resilience, citing historical data. He highlighted,

“Historically we have seen multiple 30% drawdowns during bull markets, so the current price drawdown of 15% is small in comparison.”

Pompliano highlighted Bitcoin’s 60% annual growth and noted post-spot ETF approval price crashes. He discussed meme coins’ gambling-like trading and MicroStrategy’s BTC holdings in venture capital markets. 

In summary, Pompliano highlights Bitcoin’s resilience amid volatility, emphasizing long-term growth. However, Bitcoin’s recovery sustainability remains uncertain, given its 11% decline from the all-time high.



Ishika is a graduate of Political Science from the University of Delhi. From writing content as a hobby to now pursuing it as a professional career, she has been living and breathing content all her life. Her interests lie in making sure articles are very digestible to a common reader, despite all its technicalities and jargons.
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