Bitcoin Surges Past $77,000 on Dovish Fed Outlook and U.S. Legislative Progress

Bitcoin gained on Thursday, rising 1.7% to $77,960, as investors reacted to a dual catalyst of a less hawkish Federal Reserve policy stance and significant progress on cryptocurrency legislation in Washington.

Federal Reserve Signals Softer Stance

The Federal Open Market Committee (FOMC) unanimously voted to raise the federal funds rate by 25 basis points, bringing the target range to 3.75% to 4.00%, its first hike since 2023. However, the accompanying dot plot forecast suggested a potential peak in the tightening cycle, with the median interest rate projection for the end of 2026 and 2027 holding at 4.1%.

This outlook, perceived by markets as a dovish signal, implies limited room for further rate increases, which is typically bullish for risk assets like Bitcoin. The Fed's announcement also put pressure on the U.S. dollar, a trend that historically increases Bitcoin's appeal as an alternative store of value. Data showed a notable rise in crypto futures open interest following the decision, indicating traders were opening new positions rather than simply closing out short bets.

Legislative Wins Boost Institutional Hopes

Sentiment was further bolstered by key legislative developments on Capitol Hill that point toward growing institutional legalization for digital assets. The House Financial Services Committee passed the *American Reserve Modernization Act of 2026* in a 28-to-21 vote. The bill would grant legal status to a U.S. "strategic Bitcoin reserve" and mandate that the Treasury hold seized Bitcoin for at least 20 years.

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In a related move, the House Ways and Means Committee approved the first federal tax framework for cryptocurrencies. These actions have reinforced market expectations that Washington is moving toward creating a clearer and more established regulatory environment for the asset class.

Market Reaction and Context

Bitcoin's rally appeared to be driven by crypto-specific catalysts, as the broader stock market was largely flat, with the S&P 500 showing little change. The cryptocurrency reached an intraday high of $78,443, a significant move from the previous session's open of $76,687.

The price remains well above its 52-week low of $57,877, though it is still a considerable distance from its 52-week high of $126,110, according to data from Investing.com.