The crypto market is once again in a state of uncertainty, hinging on the future decision of the U.S. Federal Reserve. Bitcoin drops below $85,000 as the fear and greed index plummets to 23. All eyes are on the Federal Open Market Committee meeting concluding today.
Markets Under Pressure Before the Fed’s Verdict
For several days, bitcoin and major cryptos have shown increased volatility, signaling growing nervousness. This morning, bitcoin dropped below $83,000, then slightly rebounded to $83,450. Ethereum, Solana, and XRP fluctuate between minor gains and losses.
Three Potential Scenarios
The central element of investors' anxiety is the Federal Reserve's stance on interest rates. Three scenarios are possible: maintaining rates and cautious rhetoric, signaling potential easing, and a stricter stance than expected.
A Crypto Market at a Crossroads
If the Fed maintains a firm, restrictive posture, the market could face a downturn. Analysts fear tightening liquidity, affecting risk assets like bitcoin. Conversely, a hint of easing could lead to an immediate rebound in the crypto market.
Jerome Powell's speech will condition market movements in the coming hours. A flexible tone could pave the way for a new bullish trend in cryptocurrencies, while a hard stance might mark the start of a correction phase.
