Bitcoin Nears $100K: Fed Relaxes Crypto Rules Amid Soaring Institutional Demand

The Fed's Regulatory Shift and Its Impact on Crypto Markets

According to Forbes, the Federal Reserve has quietly rescinded its 2022 supervisory letter that required state member banks to provide advance notification of planned or current crypto-asset activities. This move aligns the Fed with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), both of which have also withdrawn their own statements urging banks to be extra cautious with crypto-related risks. The change comes as institutional investors are driving up the price of Bitcoin, which has climbed toward $100,000 per coin, up from April lows of around $75,000. The market is reportedly heading toward a $19 trillion “tipping point.”

Analysts from Tagus Capital noted that with these restrictions lifted, state member banks can now pursue crypto ventures without prior approval, though such activities will still be monitored through standard supervision. The move is seen as a reflection of the Trump administration’s pro-crypto stance, including reduced regulatory enforcement, support for a national bitcoin reserve, and the appointment of Paul Atkins as SEC chair, who is known for backing digital assets. However, the Fed has not officially changed its policies regarding granting crypto-focused banks master accounts, which would give them direct access to the Fed’s services. Crypto-focused banks like Custodia and Kraken Financial have long campaigned for such access.

“Banks are now free to begin supporting bitcoin,” said Michael Saylor, founder of Strategy, in response to the Fed’s statement.

Bitcoin ETFs recorded their best day since January, with trades going “risk on” as reports emerged that the U.S. and China are seeking off-ramps from the global trade war. The price of Bitcoin climbed as gold fell, following claims that China is considering exempting some goods from U.S. tariffs. Market strategist Joel Kruger from LMAX Group emphasized that markets will closely monitor U.S. administration policies and Federal Reserve actions, especially regarding interest rates, recession risks, and the possibility of a return to quantitative easing.

Bitcoin price climbed toward $100,000, up from April lows of $75,000
Fed, FDIC, and OCC have all withdrawn restrictive guidance on crypto activities for banks
Institutional demand and pro-crypto regulatory changes are fueling the rally

Infobox: The Federal Reserve’s rollback of restrictive crypto guidance is seen as a major victory for the industry, potentially opening the door for greater Wall Street participation and further price gains, as reported by Forbes.

Interest Rate Cuts and Their Potential Effect on Crypto Prices

The Motley Fool reports that the U.S. Federal Reserve is under heavy pressure to cut interest rates, with President Donald Trump warning that Fed Chairman Jerome Powell’s job could be at risk if he does not act quickly. Historically, lower interest rates have led to higher crypto prices, while higher rates have had the opposite effect. During the COVID-19 pandemic, when central banks slashed rates to near zero, Bitcoin experienced a massive bull run, reaching an all-time high of $69,000 in November 2021.

Charles Hoskinson, co-founder of Ethereum and Cardano, suggested in a CNBC interview that lower interest rates could trigger a new speculative frenzy in crypto, potentially pushing Bitcoin to $250,000 by the end of the year. The article highlights three key periods since Bitcoin began trading in 2009: the post-2008 financial crisis, the Fed’s rate hikes in 2017–2018, and the pandemic-era rate cuts. In each case, lower rates benefited crypto, while higher rates hurt it.

Bitcoin is expected to be the main beneficiary of any rate cuts, but altcoins—especially those down as much as 50% for the year—could also see significant gains. The Motley Fool recommends portfolio diversification, with a focus on coins exposed to the decentralized finance (DeFi) sector, which performed well during the 2020–2021 bull market.

Period	Interest Rate Trend	Crypto Price Impact
2008–2015	Low rates post-crisis	Crypto prices rose
2017–2018	Rising rates	Crypto prices fell
2020–2021	Near-zero rates	Bitcoin hit $69,000

Lower rates make borrowing cheaper and risky assets more attractive
Altcoins and DeFi tokens could outperform in a lower-rate environment

Infobox: Historical data suggests that interest rate cuts could spark a new crypto bull run, with Bitcoin and select altcoins poised to benefit most, according to The Motley Fool.

Crypto Price Predictions and Market Trends

FXStreet reports that Bitcoin (BTC) is consolidating around $94,000 after posting a weekly surge of over 10%. This rally was driven by strong institutional demand, with U.S. spot ETFs recording a total inflow of $2.68 billion until Thursday. The market’s risk-on sentiment is further supported by the appointment of pro-crypto Paul Atkins as the new head of the SEC and a perceived softening of the Trump administration’s stance on the Federal Reserve and trade tensions with China.

Ripple (XRP) is trading at $2.18, following mid-week gains to $2.30. The price shows signs of exhaustion, but a reversal could be possible amid steady institutional and retail adoption. The validation of an inverse head and shoulders pattern suggests a potential 25% breakout to $2.74. Meanwhile, AI tokens such as Bittensor (TAO), Artificial Superintelligence Alliance (FET), and ai16z (AI16Z) have surged, reflecting bullish sentiment in the sector, even as NVIDIA excluded crypto-related projects from its Inception program.

Asset	Current Price	Weekly Change	Key Developments
Bitcoin (BTC)	$94,000	+10%	$2.68B ETF inflows, institutional demand
Ripple (XRP)	$2.18	Mid-week high $2.30	Potential 25% breakout to $2.74
AI Tokens (TAO, FET, AI16Z)	Surging	Ongoing gains	Resilience despite NVIDIA exclusion

Bitcoin consolidates after a strong institutional-driven rally
XRP eyes a 25% breakout amid adoption trends
AI tokens show resilience and bullish momentum

Infobox: Bitcoin’s consolidation at $94,000 and strong ETF inflows signal robust institutional interest, while XRP and AI tokens are positioned for further gains, as reported by FXStreet.

Current Crypto Prices and Market Sentiment

Gadgets 360 notes that Bitcoin’s price hovered around $93,400 on global platforms, maintaining levels above $93,000 for over 48 hours. On Indian exchanges, Bitcoin traded between $93,086 and $93,962. The overall crypto market capitalization rose by 0.92% in the last day, reaching $2.92 trillion. While Bitcoin remained stable, most altcoins experienced volatility, with Tether, Ripple, Binance Coin, Dogecoin, and Tron logging losses. Conversely, Solana, Cardano, Leo, Shiba Inu, Litecoin, Monero, Cronos, and Cosmos saw price increases.

Ether (ETH) recorded small losses, trading at $1,766 globally and $1,773 on Indian exchanges. Market analysts from CoinDCX and Delta Exchange observed that Bitcoin’s bullish opening and minor pullback, along with altcoin resilience, suggest a potential for a fresh rally. The $1,800 level is seen as minor resistance for Ethereum in the coming days. Sentiment remains cautiously optimistic, with accumulation patterns indicating a possible turnaround. Investors are advised to focus on fundamentally sound projects and maintain disciplined risk management.

Asset	Global Price	Indian Exchange Price	Trend
Bitcoin (BTC)	$93,400	$93,086–$93,962	Stable
Ether (ETH)	$1,766	$1,773	Small loss
Altcoins (e.g., Solana, Cardano, Shiba Inu)	Varied	Varied	Mixed

Bitcoin stable above $93,000 for over 48 hours
Altcoins show mixed performance amid volatility
Market cap at $2.92 trillion, up 0.92% in one day

Infobox: Bitcoin’s stability and a cautiously optimistic market sentiment suggest the potential for a new rally, with select altcoins poised to outperform if liquidity conditions remain favorable, according to Gadgets 360.

Financial Advisors Remain Cautious Despite Crypto Surge

WNEM highlights that despite the recent surge in Bitcoin and renewed investor interest, many financial advisors remain cautious about recommending cryptocurrency. Zachery Smith, a financial advisor with Premier Financial Group, explained that the primary concern is the lack of a clear regulatory framework. While some institutions, such as Frankenmuth Credit Union, are promoting crypto access, most advisors are hesitant to endorse crypto investments for their clients.

Financial advisors cite regulatory uncertainty as a key reason for caution
Some institutions are more open to offering crypto access than others

Infobox: Regulatory uncertainty continues to be a major barrier for financial advisors, even as institutional interest and crypto prices rise, as reported by WNEM.

Sources: