Bitcoin is experiencing significant fluctuations again, recently dropping below $77,000, but quickly recovering to $83,000. These movements are caused by several factors, including regulation, economic uncertainty, and massive market liquidations. However, the focus now is on the upcoming Federal Open Market Committee (FOMC) meeting, which could significantly impact Bitcoin's price this week.
FED Meeting: Expectations and Forecasts
The meeting is scheduled for March 19. It is expected to provide insights into the Federal Reserve's stance on interest rates for February. Current expectations suggest the FED will keep rates unchanged at 4.25%-4.5%, just as it did in January. FED Chair Jerome Powell and other officials have hinted at a cautious approach to rate adjustments, especially given the economic uncertainties. Key concerns include potential inflation risks and the impact of President Donald Trump's trade policies.
Market Reaction to FED's Decision
If the FED confirms the rates will remain unchanged, it could signal a stable economic outlook, which may enhance investor confidence in riskier assets like Bitcoin.
Potential Scenarios for Bitcoin
Analysts predict that if the rates are steady, a bullish wave could push Bitcoin towards its next resistance level of $95,000. CryptoQuant analyst Darkfost has noted that Bitcoin's open interest has reached $33 billion, indicating a high level of leverage in play. This means investors are placing significant bets on Bitcoin's next move.
As the market awaits the FED meeting outcomes, potential policy changes could substantially impact Bitcoin's price. Investors are keenly observing the developments to assess their next steps.
