Bitcoin surged past the $41,000 mark on March 20, 2022, posting a 7.8% weekly gain as cryptocurrency markets rallied in the wake of the Federal Reserve’s first interest rate increase in more than three years. The relief rally brought renewed optimism to a market that had been grappling with macroeconomic uncertainty and geopolitical turmoil.
TL;DR
- Bitcoin climbed 7.8% over the past seven days, reaching approximately $41,247
- Ethereum outperformed with a 13.4% weekly gain, trading around $2,860
- The Federal Reserve raised interest rates by 25 basis points on March 16, marking the first hike since 2018
- Since the March 2020 bottom, Bitcoin has gained 314%, far outpacing the S&P 500’s 60% and gold’s 23%
- Crypto donations for Ukraine surpassed $2 million through platforms like Endaoment
Fed’s Long-Awaited Rate Hike Sets the Tone
The Federal Open Market Committee (FOMC) concluded its March 16 meeting with a widely anticipated 25 basis point rate increase, bringing the federal funds rate into the 0.25%-0.50% range. This marked the first rate hike since December 2018 and signaled the beginning of a tightening cycle aimed at combating persistently elevated inflation.
While rate hikes are traditionally seen as headwinds for risk assets, the cryptocurrency market appeared to price in the decision well ahead of time. Bitcoin’s spot price had already bottomed near $37,000 earlier in the month before staging a decisive recovery. The lack of a more aggressive 50 basis point hike provided immediate relief to markets, with both equities and digital assets rallying in the days that followed.
According to data compiled by VanEck, Bitcoin’s performance since the March 2020 COVID-19 crash bottom has been remarkable. From that low point through March 20, 2022, BTC has appreciated approximately 314%, compared to gains of 60% for the S&P 500 and Nasdaq Composite, and a modest 23% for gold. The data underscores Bitcoin’s growing role as a high-conviction growth asset, even as it continues to exhibit significantly higher volatility than traditional asset classes.
On-Chain Metrics Signal Growing Confidence
Bitcoin’s recovery was supported by strengthening on-chain indicators. The Estimated Leverage Ratio (ELR) climbed to 0.22, its highest reading since January 2022, suggesting that traders were increasingly willing to take on leveraged positions. Meanwhile, BTCUSD Open Interest across derivatives markets rose to a new March high.
Rising Open Interest during an upward price move is generally interpreted as a bullish signal, as it indicates that new capital is entering the market rather than existing positions simply being unwound. The convergence of growing leverage ratios and expanding Open Interest pointed to a market building momentum for a potential extended rally.
Ethereum Breaks Technical Resistance
Ethereum’s 13.4% weekly gain was even more impressive than Bitcoin’s, driven by a combination of improving technicals and anticipation surrounding the network’s upcoming transition from Proof of Work to Proof of Stake. ETH’s spot price broke through a resistance line that had held for over 100 days, a technically significant development that opened the door to further price discovery.
In a notable milestone, Ethereum miners were generating more daily revenue than their Bitcoin counterparts. ETH miners captured $79.6 million in block rewards over a 24-hour period, surpassing BTC miners who earned $74.8 million. The data highlighted the intense activity on the Ethereum network, particularly in decentralized finance and NFT markets.
Crypto Philanthropy Gains Momentum Amid Ukraine Crisis
The ongoing Russia-Ukraine conflict, which entered its fourth week, accelerated the adoption of cryptocurrency for charitable giving. Crypto-native fundraising platforms reported unprecedented activity, with Endaoment alone raising over $2 million for Ukrainian relief efforts. The borderless nature of digital assets allowed international donors to bypass traditional banking restrictions and send funds directly to organizations on the ground.
The trend extended beyond Ukraine-specific causes. Web3 philanthropy was gaining broader traction in 2022, with an increasing number of charities beginning to accept cryptocurrency donations. Tax advantages — including the ability to deduct the full fair market value of donated crypto without triggering capital gains — provided additional incentive for holders to give.
Why This Matters
Bitcoin’s ability to rally in the face of a tightening monetary policy environment challenges the conventional narrative that cryptocurrencies are purely speculative assets that suffer during rate hike cycles. The March 2022 relief rally demonstrated that crypto markets can decouple from short-term macro headwinds when supported by strong on-chain fundamentals and growing real-world utility. Meanwhile, Ethereum’s technical breakout and revenue milestones reinforced the narrative that the smart contract platform was entering a transformative phase, with the highly anticipated Merge upgrade on the horizon. For investors, these developments suggested that the crypto market was maturing, with fundamentals increasingly driving price action alongside macroeconomic factors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
BTC up 7.8% on the week of the first rate hike since 2018. markets pricing in the hike was already done, relief rally was inevitable
25 bps and ETH still outperformed with 13.4%. ETH leading the recovery is basically a fixture at this point
fed_pivot_ relief rally on a 25bps hike was markets pricing in the end of uncertainty. the hike itself was irrelevant, the clarity mattered
rate_hike_realist the relief rally lasted exactly 6 weeks before Luna imploded and took the whole market with it. clarity on the hike didnt mean clarity on the cycle
relief rally was baked in. the 25bps was the least hawkish outcome possible. what was more interesting was ETH outperforming BTC by almost 2x on the week
Joana R. ETH outperforming BTC by 2x on a rate hike week is the beta trade. ETH always overextends on macro relief rallies
macro_pulse_ ETH 2x beta on macro relief is the trade. long ETH short BTC on FOMC days has been printing for years
Joana R. ETH 13.4% vs BTC 7.8% on a rate hike week tells you everything about beta in crypto. ETH always overcorrects on macro news
Yulia F. ETH doing 13.4% vs BTC 7.8% on a rate hike week is classic beta. ETH is a leveraged BTC position with extra steps. works both ways on the downside
314% BTC gain vs 60% S&P since march 2020 bottom. mainstream media still calling crypto speculative at those numbers is peak denial
314% BTC gain since the march 2020 bottom vs 60% for S&P and 23% for gold. and people still called it risky
314% in 2 years and mainstream financial media still called it speculative. gold did 23% in the same period and got a parade
gold gets a parade for 23% over two years. btc does 314% and its speculative. the bias was so obvious
sendit gold doing 23% in two years got wall street analysts on TV every day. BTC does 314% and gets called a bubble. the double standard was egregious
sendit gold gets etfs and cnbc documentaries for doing nothing. btc outperforms 5x and its still too volatile for boomers
sendit gold gets wall street parades for 23% while BTC does 314% and gets called speculative. the double standard is the entire thesis
314 percent since march 2020 bottom and people were calling the top at 41k. we went to 69k after that. classic greed cycle
crypto donations for ukraine passing $2M through endaoment. one of the first real use cases for crypto in crisis response
endaoment processing crypto donations at scale was a watershed moment. showed that crypto could do more than speculate, it could route funds around broken banking infrastructure in a war zone
eth did 13.4 percent while btc did 7.8 percent. the eth/btc ratio was screaming buy in march 2022 and nobody on CT cared because they were obsessed with luna
crypto donations passed 2M for ukraine and the market still pumped. showing crypto works when traditional banking infrastructure fails during wartime was a turning point
eth outperforming btc 13.4 vs 7.8 percent after a rate hike tells you which one benefits from liquidity expectations
the 314pct gain since march 2020 bottom vs sp500 at 60pct is the only chart you need for the btc vs equities debate
314% in two years while the s&p did 60. and mainstream analysts were still calling it a bubble at 41k lol
Marek H. 314% in two years and people at 41k were still calling the top. six months later BTC was at 17k. they were wrong about the top but right about the cycle