Cryptocurrency market investors cautiously await the Federal Reserve meeting outcomes, which may impact price dynamics.
Impact of Fed Meeting on Cryptocurrencies
Historically, Fed meetings have significantly influenced the cryptocurrency market. Higher borrowing costs and risk-averse environments lead to decreased demand for highly speculative assets like cryptocurrencies.
Crypto Investors' Reaction
Investors are cautiously anticipating the Fed's policy meeting, scheduled for March 18-19, where rates are expected to remain unchanged. Consequently, Bitcoin and Ethereum have shown marginal declines in the last 24 hours. XRP, SOL, and Shiba Inu have dropped nearly 4%, while Cardano, Dogecoin, and Polkadot have lost 3% during this time.
Analysts' Opinions on Market Future
According to Ki Young Ju, head of analytics firm CryptoQuant, the Bitcoin bull market may be coming to an end. He forecasts 6 to 12 months of bearish or sideways price action, citing decreasing market liquidity.
The Federal Reserve's decision's impact on the market is significant, and many analysts predict continued volatility in the coming months.
