Bitcoin has risen steadily since last night's low of $81,500, touching $87,000 again this morning after the Federal Reserve's interest rate decision meeting early in the morning. The panic appears to be slowly dissipating, and the market's lowest point is gradually passing. In the past 24 hours, a total of 101,662 people were liquidated globally, with a total liquidation amount of $0.353 billion, mainly from short positions. Rhythm BlockBeats has gathered some Community members' views on the market rise and summarized three reasons for the increase.

The Federal Reserve shifts to a dovish stance: The liquidity gate has opened.

The monetary policy of the U.S. Federal Reserve plays a crucial role in the crypto market. On March 20, the Federal Reserve decided to keep the interest rate unchanged at 4.25-4.50% and released a dovish signal, suggesting that interest rate cuts may come later this year due to easing inflation data and increasing economic growth concerns. This meets market expectations. At the same time, it announced a significant slowdown in the pace of balance sheet reduction "QT," alleviating market liquidity pressure. Federal Reserve Chairman Powell reassured investors that the risk of recession is low, the U.S. economy remains strong, and the job market is still robust.

The dovish Federal Reserve has lowered the opportunity cost of holding non-yielding assets, driving capital from low-yield bonds to risk assets. Today's upward trend may reflect institutional investors and ETF providers reallocating funds to Bitcoin, expecting looser monetary conditions. As liquidity flows into the market, the price of Bitcoin breaks through resistance levels, triggering investors' FOMO mentality.

In fact, institutional bullish sentiment seems to have returned. Despite Bitcoin's 11.4% drop over the past 30 days, Blackrock has shown renewed confidence in BTC. The world's largest Asset Management company recently increased its shareholding in its iShares Bitcoin Trust fund IBIT by 2,660 Bitcoins, marking the largest inflow of funds for the fund in the past six weeks. Since early February, following a period of uncertainty in IBIT's fund flow, this significant purchase indicates that institutions are positioning themselves for potential gains as market conditions evolve.

Market analyst "IncomeSharks" believes Bitcoin is rebounding at the super trend support level and still maintains a buy signal. Looking back at BTC's performance against the OBV "On-Balance Volume" resistance level and diagonal resistance level, the follow-up at the arrow point is a clear strong bullish signal.

Note: OBV is a technical analysis indicator that predicts price movements of stocks or cryptocurrencies by utilizing volume flow. The OBV increases volume on days of price increases while decreasing volume on days of price declines, forming an accumulation line that reflects buying and selling pressure. With increased institutional activity and heightened market volatility, investors pay more attention to volume-based indicators.

Arthur Hayes also stated on Social Media that Powell has indicated that Quantitative Tightening "QT" essentially ends on April 1st. The market now needs a real bullish signal, either an exemption for Supplementary Leverage Ratio "SLR" or a restart of Quantitative Easing "QE". The $77,000 Bitcoin is likely the bottom.

RSI is oversold, and panic sentiment is decreasing.

As of March 2025, the funding rate of Bitcoin futures has remained negative for several months, indicating that leveraged traders have strong bearish sentiment, but this also creates a potential springboard for price increases. A negative funding rate means that short holders pay fees to long holders, which typically occurs in declining prices or oversold conditions.

With panic sentiment decreasing recently, driven by stable Gold prices, fewer trade war concerns, and Trump's friendly signals towards Cryptos, Bitcoin is moving out of the panic-driven consolidation. Historical data shows that negative funding rates often indicate a bullish price dynamic. Today's surge may be a result of bulls accumulating at these "discount" prices, pushing prices higher as panic fades and optimism returns.

Trader "MerlijnTrader" believes that a Bitcoin rebound is imminent, pointing out that the RSI Indicator is in an oversold state and that Bitcoin has just touched important bottom signals. Historically, every time this signal appears, BTC experiences a strong rebound.

Global M2 continues to rise: increased appeal as an inflation hedge.

In early 2025, global M2 is steadily rising due to the coordinated easing policies of the Federal Reserve, European Central Bank, and others. This expansion, driven by low interest rates and bond purchases, reflects the environment where Bitcoin emerges as a devaluation hedge against fiat currencies.

As global liquidity increases, the limited supply of Bitcoin becomes more attractive as a store of value, especially in light of concerns over dollar hegemony and Trump’s tariff policies. Bitcoin theoretically can offset the erosion of asset value due to inflation, and today’s upward trend may reflect institutions and retail investors flocking to BTC as a hedge against rising M2, pushing prices towards new highs.

Analyst Crypto Raven "hiRavenCrypto" believes that the comparison between M2 and BTC prices is usually proportionally correlated. However, a gap has recently emerged, indicating that BTC prices have not yet caught up with M2. This suggests that a surge in $BTC price is imminent, potentially reaching at least 100K.

Despite persistent uncertainty, as the Federal Reserve releases dovish signals, the current market has shown clear bottom characteristics: institutional returns, oversold RSI, negative funding rates, and technical indicators rebounding from the bottom. Major institutions like Blackrock are actively increasing Shareholding, along with more government institutions "Arizona passed two BTC reserve measures yesterday" beginning to consider Bitcoin reserves, market confidence is returning.