The Federal Reserve's decisions at the March 21 meeting have influenced the state of cryptocurrency markets. The anticipated course of rate cuts may positively impact high-risk assets, including cryptocurrencies, although ongoing economic risks may limit this effect.
Fed's Forecasts and Their Impact
During a press conference, Fed Chairman Jerome Powell announced the possibility of future rate cuts. This decision is linked to expectations of slower economic growth and temporary inflation pressures. The potential increase in interest towards risky assets, including cryptocurrencies, could be driven by this policy, yet persistent economic threats might restrain growth.
Fed: Possible QT Slowdown
The Fed announced a potential slowdown in quantitative tightening. Jerome Powell emphasized that inflation pressures might be temporary, making further rate cuts possible to support economic growth. Microeconomic shifts may lead to market caution, affecting investment in assets, particularly the price of Bitcoin, which remains pressured and unlikely to surpass the $90,000-$92,000 range.
Bitcoin Market and Economic Uncertainty
Bitcoin's price changed nearly -1.78% over the past 24 hours, trading at $83,740.44 as of March 21, 2025. The market capitalization of Bitcoin stood at $1.66 trillion, and the trading volume decreased by -33.66%, reaching $24.38 billion. Despite prospects of potential Fed policy easing, challenges such as economic instability and regulatory uncertainties remain relevant, requiring caution from investors.
The Federal Reserve's decisions and forecasts continue to exert significant influence on crypto markets. Amidst unstable economic conditions and regulatory uncertainties, investors remain cautious, monitoring policy changes.
