- Federal Reserve’s decision could impact Bitcoin’s price and potentially lead to a breakout.
- Factors could influence Bitcoin’s movement such as inflation, job growth, and growing investor interest in Bitcoin ETFs.
- Experts insights on financial trends, including potential money printing, and how these could shape Bitcoin’s future growth.
FOMC meeting : Federal Reserve Chairman Jerome Powell, according to experts, will keep interest rates steady at 4.25%-4.50%, which can lead to the price of Bitcoin rising above $88,000. Following the latest tariff action of U.S. President Donald Trump, everyone now eagerly awaits the announcement of the U.S. Federal Reserve interest rate on March 19.
FOMC Meeting: Market Awaits Jerome Powell’s Signal
The upcoming Federal Open Market Committee FOMC meeting on March 18-19 is a market-sensitive event. The anticipated rate decision on March 19 could release more volatility in Bitcoin and other risk assets.
Market participants are naturally anticipating Powell’s speech, and any suggestion of dovishness or rate cuts will see Bitcoin hit $83,000. Market commentator Obez said, “If Powell hints at loose policies in FOMC meeting, Bitcoin might break above $83,000.”
But the macroeconomic climate sends conflicting signals:
It is at 2.8%, also higher than the 2% Fed target.
Strong job growth militates against any immediate requirement for money stimulus, potentially constraining Bitcoin’s upside in the short term.
Most Critical Bitcoin Price Points to Monitor
For its rising trend to continue, Bitcoin must flip the $85,000 resistance level into support. Among the technical indicators to watch is the 200-day exponential moving average (EMA), which Bitcoin dipped below on March 9 its first since August 2024.
Bullish scenario: If BTC takes back $85,000, it can break above $88,000 and target new highs.
Bearish scenario: Inability to stay above $78,000 could lead to a return to support at $74,000. Other threats of bears are a potential drop to $70,000-$66,000.
Top analysts like SuperBitcoinBro and Nebraskangooner advise that Bitcoin can fall by $71,300-$73,800 before its next big move.
Bitcoin ETF Demand Drives Hopes
In spite of uncertainty in the market, Bitcoin bulls are optimistic about increasing institutional demand for spot Bitcoin ETFs. Bitcoin ETFs saw high net inflows of $274 million on March 17, the highest since February 4. This capital injection could be the trigger that BTC needs to break resistance levels and trigger towards new all-time highs.
Arthur Hayes on Market Liquidity and Money Printing
BitMEX co-founder Arthur Hayes, now CEO of Maelstrom Investment Company, weighed in on the macroeconomic landscape in an interview a while back. Hayes emphasized that money printing by the government is a common outcome of financial crises regardless of politics.
“The last Bitcoin bull cycle to $70,000 in late 2021 was fueled by record-sized COVID-era stimulus and money printing,” Hayes added. He believes that the current market is in the midst of a liquidity drought but foresees an unprecedented money-printing wave in waiting. When the floodgates open, it’s go time,” he said, predicting the liquidity will come back in an even bigger wave than ever.
Conclusion:
A Week to Remember for Bitcoin With Bitcoin price hovering around crucial resistance levels, the next FOMC meeting on March 19 will determine its future direction. Traders need to watch Powell’s words in FOMC meeting carefully, as any dovish turn would push BTC to $88,000 and beyond. Alternatively, ETF demand and possible macroeconomic changes mean that Bitcoin is poised for another record-breaking rally
