Bitcoin Surges Past $77,900 on Dovish Fed Signal and U.S. Legislative Progress

Bitcoin (BTC/USD) rose +1.7% to trade at $77,960 on Friday, driven by a combination of a less aggressive U.S. monetary policy outlook and significant legislative advancements in Washington that signal growing institutional acceptance.

Fed Signals Peak Interest Rates

The primary catalyst for the rally was the Federal Open Market Committee's latest policy decision. While the Fed raised the federal funds rate by 25 basis points to a range of 3.75%–4.00%, its first hike since 2023, the market focused on the central bank's forward guidance.

According to the FOMC's accompanying projections, the median forecast for the federal funds rate was 4.1% through the end of both 2026 and 2027. Investors interpreted this as a signal that the tightening cycle is nearing its end, a dovish stance that provides a tailwind for risk assets like cryptocurrencies. The outlook also put downward pressure on the U.S. dollar, which often has an inverse correlation with Bitcoin's price.

Legislative Milestones Boost Crypto Sentiment

Adding to the bullish momentum, two key U.S. House committees advanced crypto-related legislation, reinforcing the view that a clearer regulatory framework is emerging.

Ad

• The House Financial Services Committee passed the American Reserve Modernization Act of 2026 in a 28-21 vote. The bill would formally establish the U.S. government’s Strategic Bitcoin Reserve and mandate that the Treasury hold any forfeited Bitcoin for at least 20 years.
• Separately, the House Ways and Means Committee approved the first federal tax framework for cryptocurrencies by a wide margin.

Market Reaction and Context

Bitcoin's advance was notably detached from the broader market, where major equity indices like the S&P 500 and NASDAQ were nearly flat. This indicates the move was driven by crypto-specific factors rather than a general risk-on rally.

Data on crypto futures showed a significant increase in open interest following the Fed's announcement, suggesting that traders were opening new long positions rather than simply covering existing shorts. The digital asset reached a session high of $78,443, moving well above its previous session's open of $76,687 and its 52-week low of $57,877.