The cryptocurrency market saw a strong 2% jump in the last 24 hours, pushing its total value to around $2.92 trillion on Thursday, March 20, during early London trading. A 3.2% rise in Bitcoin (BTC) set the stage for a broader market rally, with Ethereum (ETH), XRP, and Solana (SOL) among the top gainers.
But that’s not the whole story. Behind this surge are some major global shifts – gold hitting record highs, fresh economic signals from the US Federal Reserve, and shifting policies under the Trump administration.
At the same time, the market’s volatility triggered over $357 million in liquidations, mostly affecting short traders who bet against the rally.
Key Reasons Behind Today’s Crypto Rally
Gold Hits New Highs, Bitcoin Follows
For the first time in history, gold prices have stayed above $3,000 per ounce for three straight days. Since Bitcoin is often compared to gold as a store of value, its rebound from an important support level of $80,000 was expected.
The broader altcoin market also moved in the same direction, showing a strong connection with Bitcoin’s price action.
Fed’s Inflation Outlook
On Wednesday, Federal Reserve Chair Jerome Powell said that President Donald Trump’s tariffs are already adding to inflation. The Fed now expects inflation to rise slightly to 2.7% by the end of 2025, up from the current 2.5%. Powell reassured that, despite the slower growth outlook, the economy remains stable.
After his statement, major US stock indexes, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, all rose about 1%. Since crypto prices have often moved in sync with the stock market, this contributed to the ongoing rally.
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Growing Demand for Crypto Investments
Interest in crypto has been rising in recent days, with Bitcoin leading the way. US-based spot Bitcoin ETFs have now recorded three consecutive days of cash inflows, increasing the chances of finishing the week with positive net inflows.
On Wednesday, Bitwise’s BITB ETF saw the highest inflow, bringing in around $12 million – the most among Bitcoin ETF issuers.
Meanwhile, on-chain data shows that large investors, known as whales, have been accumulating more Bitcoin. This has led to a drop of around 2,022 BTC from centralized exchanges, which often signals confidence in long-term holdings.
Crypto-Friendly Policies Under Trump
As Coinpedia highlighted, the wider crypto market has significantly benefited from the administration change in the United States. Under the Trump administration, several crypto litigations have been dropped by the U.S. SEC and CFTC.
On Wednesday, Brad Garlinghouse, CEO of Ripple Labs, announced that the U.S. SEC has dropped the appeal of the long-standing lawsuit against XRP sale.
Gold is soaring, Bitcoin is rallying, and the markets are buzzing – looks like the crypto world just got a fresh dose of momentum.
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FAQs
Bitcoin is seen as digital gold, so when gold hits record highs, BTC often follows due to increased investor interest in store-of-value assets.
Under the Trump administration, regulatory clarity improved as lawsuits were dropped, boosting market confidence and institutional investments.
Whales are accumulating BTC as spot Bitcoin ETFs see inflows, reducing exchange supply and signaling bullish sentiment for future gains.
