In a significant turn of events for the cryptocurrency market, Bitcoin (BTC) is edging closer to the impressive $86,000 threshold, while XRP has surged by 10%, showcasing one of the most substantial gains among major cryptocurrencies as the market undergoes a broader recovery within the last 24 hours.

Following the recent Federal Open Market Committee (FOMC) meeting, Bitcoin saw a rise in early Asian trading hours on Thursday. The Federal Reserve opted to maintain current interest rates, albeit with a lowered growth outlook stretching until 2027. This decision appears to have instilled a sense of cautious optimism among traders.

Ethereum (ETH) also experienced a notable yet somewhat muted response, following a sudden 7% spike late Wednesday, ultimately closing the day with a 3% increase. Other notable performers included Solana's SOL, Dogecoin (DOGE), and Binance Coin (BNB), which all recorded gains below 6%. In contrast, Uniswap's UNI witnessed an impressive 8% surge after token holders approved a substantial $165 million funding proposal for its foundation.

A remarkable highlight of the day was XRP's robust jump, which briefly exceeded 12% before stabilizing. This increase was in part fueled by Ripple Labs' recent victory, concluding a long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), which was officially announced on Wednesday.

Adding to XRP's momentum, Bitnomial has announced the launch of futures contracts tied to XRP for U.S. investors — a groundbreaking development in the region that is expected to further enhance the token's appeal.

In the political sphere, former President Donald Trump has voiced his opinion on the Fed's monetary policy, suggesting they should cut interest rates, especially with new U.S. tariffs set to impact the economy starting April 1. Trump's national economic adviser, Kevin Hassett, projected a 2.5% growth rate, which significantly exceeds the Fed's more conservative estimate of 1.7%.

Trump took to Truth Social, asserting, "The Fed would be MUCH better off CUTTING RATES as U.S. Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!!!"

Despite the overall positive momentum, traders remain cautious about the sustainability of this rally. Many speculate it could merely be a relief bounce following five weeks of persistent equity sell-offs. According to Augustine Fan, head of insights at SignalPlus, traders are waiting for solid economic data to make more informed decisions about the market's trajectory.

Jeff Mei, COO at BTSE, shared similar views in a recent email, indicating that the market sentiment has been exceedingly weak in recent weeks. He noted, "Even Jerome Powell's relatively neutral speech and the mere absence of negative comments have spurred a rally in crypto prices."

Mei urged clients to remain vigilant, emphasizing the need for caution as the market could swiftly shift once again. "Additionally, the absence of new tariff announcements has helped stabilize the market. However, as we navigate through upcoming phases of volatility, we advise everyone to stay observant and prepared," he concluded.

As the cryptocurrency landscape evolves, traders and investors alike are keenly watching developments that may signal the next big move in this dynamic financial environment. Will Bitcoin keep climbing, or will caution take the lead? Only time will tell!