BTC Tops $78,000 for 14-Day High as Danske Bank Forecasts 50-Basis-Point Fed Easing

Bitcoin is highly sensitive to interest rates and dollar liquidity, making the Federal Reserve’s rate decisions a key driver of crypto-asset and technology-stock valuations. Markets had initially expected monetary policy to ease in 2026, but rising energy prices have deepened inflation concerns and made investors more cautious, weighing on both Bitcoin and the Nasdaq.

After the FOMC left rates unchanged at its latest 2026 meeting, Chair Jerome Powell struck a hawkish tone, while the Fed raised its inflation forecast to 2.7%, signaling that rate cuts could be delayed. Bitcoin promptly fell below $71,000 and briefly approached $70,500. About 128,000–135,000 traders were liquidated across the market, with liquidations totaling roughly $452 million–$458 million.

Bitcoin rose above $75,000 as risk appetite recovered, with the cryptocurrency also closely tied to the outlook for U.S. interest rates. Investors are betting that Federal Reserve rate cuts could improve liquidity conditions and boost demand for crypto assets. Morgan Stanley has maintained its forecast for monetary easing this year despite rising oil prices and mounting inflation concerns, drawing market attention.

Bitcoin surged to $75,500 in early trading, while Ether approached $2,400. The sharp swings triggered liquidations of nearly $570 million in leveraged positions, indicating that bearish traders were caught in a short squeeze. Morgan Stanley's chief economist expects the Federal Reserve to cut rates in June and September, arguing that the oil-price surge is not yet enough to alter its projected easing path.

Because Bitcoin is denominated in U.S. dollars, a stronger dollar typically weighs on its price, while persistently high interest rates make non-yielding assets less attractive. Conflict in the Middle East has driven up energy prices and inflation concerns, prompting markets to push back bets on Federal Reserve rate cuts. A flight to the dollar has put pressure on risk assets including cryptocurrencies.

On March 7, 2026, Bitcoin fell 3.4% over 24 hours to $67,960, surrendering gains made when it touched $74,000 on March 5, though it remained up 3.6% over seven days. Glassnode said 43% of the supply was held at a loss. Messari reported that weekly net stablecoin inflows surged 415% to $1.7 billion, suggesting capital was still waiting for an opportunity to enter the market.