Bitcoin, Altcoins Extend Gains After Fed Meeting — Key Factors To Watch Next

Bitcoin (BTC) and the broader crypto market extended their gains after the Federal Reserve’s pause on interest rates.

BTC’s price demonstrated significant volatility in the last 24 hours. Initially, it dipped to approximately $101,429 from around $103,000 within a short span. However, it rebounded after the Fed meeting, reaching a session high of about $104,750.

Smaller cryptocurrencies tailed the Bitcoin price trend. Ethereum’s native token, Ether, for instance, rose approximately 1.70%, and XRP (XRP) jumped 1%.

The rise in the crypto market appeared as some analysts saw potential political influence in the upcoming Fed rate decisions, given that futures traders see little to no rate cuts in 2025.

Christopher Rupkey, chief economist at FWDBONDS, noted that a Trump presidency could pressure the Fed for rate cuts despite Powell’s insistence on independence.

Powell Addresses Crypto Concerns in Post-FOMC Press Conference

In his post-meeting press conference, Fed Chair Jerome Powell addressed the relationship between traditional banking and the cryptocurrency sector.

He affirmed that banks are “perfectly able” to serve crypto customers, provided they understand and manage the associated risks.

Powell added:

“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal.”

These comments arrive amid heightened expectations for crypto-friendly regulations under President Donald Trump’s administration, which has shown strong support for the digital asset sector.

Recent developments include the CME Group’s plan to introduce futures products on Robinhood’s platform, encompassing Bitcoin and Ether.

Additionally, investment firms are actively submitting proposals to the Securities and Exchange Commission (SEC) to launch various crypto exchange-traded funds (ETFs), including those focused on memecoins.

Other Latest Developments Driving Crypto Sector Higher

The rise of the crypto market in the past 24 hours coincided with a flurry of trending and optimistic news headlines.

They are:

• Bitwise’s Matt Hougan suggests President Trump’s recent crypto executive order could potentially shorten and lessen future Bitcoin pullbacks
• Tesla has reported $a 600 million profit on its Bitcoin holdings
• Cardano transitions to full decentralized governance after Plomin hard fork
• South Dakota and Texas seek to establish Bitcoin reserves
• Trump-themed memecoins have fueled Solana’s biggest week on Pump.fun
• Cboe BZX refiles for Solana ETFs on behalf of 4 issuers
• Japan’s Metaplanet plans to buy 21,000 Bitcoin by 2026, raising $745 million to reach 10,000 BTC goal

Bitcoin (BTC) Enters Bull Flag Breakout Stage, Eyeing New Record High

Bitcoin has broken out of a classic bull flag pattern, signaling potential for further upside in the coming sessions.

A bull flag is a continuation pattern that forms after a strong price surge, followed by a period of consolidation. This consolidation phase appears as a downward-sloping channel, ultimately resolving with an upward breakout. The pattern suggests buyers are regaining control, leading to a higher leg.

On the 4-hour chart, Bitcoin had been consolidating within a downward-sloping channel for over a week.

The breakout above the upper trendline confirms the bullish structure. Technical targets point toward a move to around $116,000. This target is derived by measuring the flagpole’s height—the sharp rally before consolidation—and projecting it upward from the breakout point.

Bitcoin’s move above the 50-day and 200-day exponential moving averages (EMAs) further strengthens the bullish case. The next test for bulls will be sustaining momentum above the breakout level.

A strong close above $105,000 could trigger further buying pressure, while a failure to hold this level may lead to a retest of the breakout zone.

The breakout aligns with broader market optimism. Traders are eyeing Bitcoin’s potential for new all-time highs in 2025.