Bitcoin Surges on Dovish Fed and Pro-Bitcoin Legislation
Bitcoin (BTC) surged by over 1.7% to $77,960 on Wednesday, driven by a combination of factors including a less-hawkish-than-expected Federal Reserve policy update and significant legislative progress for Bitcoin in Washington.
The Federal Open Market Committee voted unanimously to raise the federal funds rate by 25 basis points to a range of 3.75%, 4.00%, marking the first rate increase since 2023. However, the accompanying dot plot projection indicated that further tightening would be limited, providing relief for risk assets.
The House Financial Services Committee passed the American Reserve Modernization Act of 2026 in a 28-21 vote, which would give the U.S. government's Strategic Bitcoin Reserve formal legal standing and require the Treasury to hold its forfeited Bitcoin for at least 20 years.
Additionally, the House Ways and Means Committee approved the first-ever federal cryptocurrency tax framework by a wide margin, reinforcing the view that Washington is moving towards greater institutional legitimacy for digital assets.