Bitcoin (BTC) surged to two-week highs on March 20 following speculations of a significant update in the US government’s crypto policy. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching close to $87,500 on Bitstamp, currently stabilizing near $86,000. The spike was fueled by the Federal Reserve’s decision to maintain current interest rates, easing concerns about inflation. Federal Reserve Chair Jerome Powell’s comments during a press conference further boosted market sentiment. The S&P 500 also saw a 1% increase, adding $500 billion in market cap. Former BitMEX CEO Arthur Hayes noted the positive signal from the Fed, suggesting a potential restart of quantitative easing. Traders awaited a possible US crypto announcement on March 21, following rumors of a major policy change. President Trump’s executive order to establish a Strategic Bitcoin Reserve earlier in the month had minimal impact on markets. With Bitcoin surpassing key resistance levels, optimism among traders was on the rise. Analysts highlighted the potential for a further 8% rally to reclaim previous highs. This article emphasizes that all investment decisions carry risks and recommends conducting thorough research before investing.