Investors Eagerly Anticipate!
The cryptocurrency data platform CoinMarketCap shows that Bitcoin (BTC) surged from $82,953 to $87,427 within the past 24 hours, strongly breaking through the 200-day moving average at $84,000. Ethereum has also reclaimed the $2,000 mark, while XRP skyrocketed by 15% in a single day, reaching a peak of $2.57. The bullish momentum in the crypto market is akin to a surging flood. Peng Yunxian, founder of the Taiwanese cryptocurrency exchange HOYA BIT, analyzed that the overall market had already shown strong gains prior to the Federal Open Market Committee (FOMC) meeting, and the significant progress in the XRP (Ripple) lawsuit has become the biggest catalyst for this trend. XRP emerged as the strongest-performing altcoin of the day, while Ethereum has returned to $2,000, with the market now focusing on the next technical target of $3,000. Peng Yunxian pointed out that quality assets are often undervalued when prices are low, and Ethereum below $4,000 still falls within the range of being undervalued, maintaining extremely high investment value in the long term. The crypto market is welcoming multiple favorable factors, suggesting that the explosive growth may have just begun.
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Bitcoin Reclaims 200-Day Moving Average – Key Levels Highlighted by Peng Yunxian of HOYA BIT
Bitcoin’s return to the 200-day moving average is a crucial market signal for identifying long-term trends. Looking back over the past few weeks, Bitcoin prices were constrained below the 200-day moving average for an extended period. Its recent rebound signifies a shift in market sentiment. Peng Yunxian, founder of HOYA BIT, stated that attention should now be paid to whether Bitcoin will close the CME futures gap, which is approximately around $87,200. If this gap is closed and the price remains strong, it will open further upward space for the market. However, past experiences show that the price has sometimes retreated after filling the gap, so the market needs to closely monitor subsequent developments.
SEC Withdraws XRP Lawsuit, Igniting Market Sentiment
Ripple CEO Brad Garlinghouse announced that the U.S. Securities and Exchange Commission (SEC) will withdraw its appeal against Ripple, bringing an end to this four-year legal battle. Following the news, market sentiment surged, causing XRP to spike 15%, reaching a high of $2.57. “At this moment, we have finally arrived!” Garlinghouse stated on social media platform X, adding, “The U.S. SEC has abandoned its appeal, marking a victory for Ripple and the entire cryptocurrency industry!”
The lawsuit began in 2020 when the SEC accused Ripple of raising $1.3 billion through XRP as an unregistered securities offering. The lawsuit led to an 80% drop in XRP, with investors losing over $15 billion. However, in 2023, the court ruled that Ripple’s sales of XRP to institutional investors were illegal, but sales to retail investors were not, which the market interpreted as favorable for Ripple, subsequently restoring XRP’s upward momentum. Now, with the SEC’s withdrawal of the appeal, the legal risks for XRP have significantly decreased, and the market anticipates that this will pave the way for the approval of XRP ETFs. Peng Yunxian of HOYA BIT indicated that several asset management companies, including Grayscale and Bitwise, have submitted XRP ETF applications, significantly increasing the likelihood of SEC approval. This development will bring greater institutional capital inflow into XRP, boosting investor confidence and driving the overall market upward.
Federal Reserve Slows QT, Market Liquidity Rebounds
Peng Yunxian of HOYA BIT analyzed another major positive factor: the Federal Reserve announced on March 20 that it will slow down its balance sheet reduction (QT) starting in April, lowering the monthly U.S. Treasury reduction cap from $25 billion to $5 billion. This marks the first slowdown since the balance sheet reduction began in June 2022. After the announcement, the market reacted strongly, with Bitcoin rising 5% in a single day to a high of $87,453. Peng Yunxian noted, “This indicates that the Federal Reserve is beginning to ease the pressure on market funds. Past experience shows that whenever liquidity improves, Bitcoin is usually the biggest beneficiary.” The market generally believes that this move by the Federal Reserve will help funds flow back into risk assets, further driving the rise of the cryptocurrency market.
Trump Set to Announce Cryptocurrency Policy, Market Highly Anticipates
In addition to the Federal Reserve’s policy adjustments, U.S. President Trump is scheduled to attend the Digital Asset Summit 2025 (DAS) at around 10 PM Taipei time on March 20, where he will announce significant policy related to cryptocurrencies. Peng Yunxian of HOYA BIT anticipates that Trump may reaffirm his support for cryptocurrencies and even propose specific regulatory reforms. If Trump’s remarks send positive signals to the market, institutional capital from the U.S. could accelerate its entry, further propelling the market upward. “If Trump commits to easing regulations, it will be a super catalyst for the crypto market,” Peng Yunxian analyzed. Recent market trading data shows that U.S. institutional investors have begun to position themselves early, indicating their optimistic attitude towards Trump’s policies.
A Series of Positive Developments: Is the Market Entering a Super Bull Market?
With Bitcoin reclaiming the 200-day moving average, the XRP lawsuit concluding, the Federal Reserve slowing QT, and Trump’s impending policy announcement, these favorable factors converge, leading market investors to envision the arrival of a new bull market. However, Peng Yunxian of HOYA BIT cautioned that despite the enthusiastic market atmosphere, investors should still carefully assess risks. In the short term, whether Bitcoin can successfully fill the CME futures gap will be a key observation point for the market. While multiple positive factors have emerged, investors should respond calmly and manage risks effectively, as true bull markets typically commence when the market least expects them to.
