Bitcoin and the broader crypto market are experiencing a remarkable resurgence, fueled by a recently leaked revelation about former President Donald Trump's ambitious crypto plans, which has sent ripples of panic through traditional financial circles.

Bitcoin's price is racing towards the monumental $100,000 mark, rebounding sharply from April lows of around $75,000. This bullish momentum is prompting speculations about the market possibly crossing a staggering $19 trillion threshold.

Amid apprehensions that crypto-related risks could disrupt the entire financial system, the Federal Reserve has quietly moved to relax previous regulatory constraints that essentially held Wall Street back from investing in crypto.

In a surprising yet strategic shift, the Fed announced the withdrawal of guidance originally set forth during the Biden administration, which required banks to secure prior approval before engaging in any cryptocurrency or stablecoin activities.

This decision 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 rolled back similar restrictions.

Previously, the Fed had sounded alarms regarding the volatility and potential legal uncertainties associated with engaging in crypto, but with these restrictions lifted, state member banks can now freely explore crypto ventures—though these activities will still be subject to standard supervisory oversight.

Market analysts suggest this move highlights a growing pro-crypto stance from the Trump administration, which includes a decrease in regulatory pressures, proposals for a national bitcoin reserve, and the appointment of SEC chair Paul Atkins, a known advocate for digital assets.

Experts are celebrating this shift as a significant win against the restrictive measures of the Biden era, described by some as an underhanded "Operation Choke Point 2.0." A supporter within crypto banking remarked that the Fed is definitely steering the ship in the right direction.

Michael Saylor, founder of Strategy, encapsulated the sentiment on social media by stating, "Banks are now free to begin supporting bitcoin." This newfound freedom comes after a year during which several Bitcoin exchange-traded funds (ETFs) launched with great success, spurring banks to eagerly offer crypto services to their clients.

This week, Bitcoin ETFs enjoyed a significant boost, marking their best performance since January and breaking a downward trend as risk appetite surged. This was buoyed by reports that the U.S. and China might be seeking to ease tensions in their trade relationship, leading to a rise in Bitcoin as traditional safe-haven assets like gold began to falter.

However, despite this bold announcement, the Fed has yet to officially adjust its policies regarding the provision of master accounts to crypto-focused banks, a critical need for institutions like Custodia and Kraken Financial, which have long sought such accounts.

Looking ahead, market analysts will be keeping a close eye on the intersection of U.S. administration policies and Federal Reserve actions. Joel Kruger, Market Strategist at LMAX Group, predicts that as the Fed faces pressure to implement more aggressive rate cuts, the potential for broader dollar outflows may rise.

With uncertainty still looming over the economy, the crypto market stands at a pivotal moment, eager for what the future holds.