With rising tension in the crypto market due to Donald Trump's new tariff policy, attention is on the Fed's interest rate decision.
Impact of Fed Decision on the Market
The FOMC meeting on March 18-19 is adding to market tension. Traders anticipate potential volatility due to the decision set for March 19. All focus is on Federal Reserve Chair Jerome Powell's speech, as his words could push Bitcoin higher or slow it down. Analysts are hoping for signals of rate cuts, which could boost Bitcoin past $83k.
Key Bitcoin Levels
Bitcoin needs to turn the $85k resistance level into support to aim for higher levels, possibly reaching $88K. This requires BTC to reclaim its position above the 200-day exponential moving average, lost on March 9. Meanwhile, the bearish scenario suggests a drop below $78,000, with a potential retest of support at $74,000. Further declines could push BTC toward the $70,000-$66,000 range.
Rising Demand for Bitcoin ETF
A bright spot for Bitcoin bulls is the increasing demand from spot Bitcoin ETFs. On March 17, ETFs recorded $274 million in inflows—the highest since February 4. This could provide the momentum needed for Bitcoin to break above its current resistance and target new highs in the coming weeks.
The Fed's interest rate decision could significantly impact the crypto market. Traders and investors are keenly watching the meeting's outcome, as it may set the short-term trajectory for Bitcoin.
