The crypto market is on edge as investors await the Fed’s interest rate decision at the FOMC meeting on March 19, 2025. Most expect rates to stay the same, but inflation and new tariffs add uncertainty.
Market Dip Ahead of Fed Decision
With the FOMC meeting approaching, the crypto market is tense. Investors are closely watching Fed Chair Jerome Powell’s speech for hints about interest rates. Bitcoin (BTC) and Ethereum (ETH) have already dropped. Analysts believe Powell’s words could trigger big price swings. If he hints at rate cuts, BTC could soar, but uncertainty may bring more short-term volatility.
Fed's Impact on Bitcoin
Yesterday, Bitcoin closed at $82,577.24, down 2.09%, and today dropped another 0.35%, ending at $82,579.96. Ethereum also took a hit, losing 2.52% in one day. Despite these drops, BTC has shown strength. Analysts believe it could rise even higher if the Fed hints at rate cuts. Analyst Obez said, 'If Powell's speech is dovish, Bitcoin could very well break past the resilient $83,000 mark.'
Global Political Changes
Discussion on interest rate change is not the only factor affecting the crypto market. The release of the remaining JFK assassination files could briefly impact the market if they fuel political distrust or expose hidden operations. Investors might turn to Bitcoin as a safe haven. However, unless the documents affect global policies, any impact will likely be short-lived.
The hype around crypto suggests that the FOMC meeting will be key to crypto’s next move. If Powell suggests future rate cuts, Bitcoin could hit new highs. But if uncertainty remains, prices may stay volatile.
