- The increasing macroeconomic uncertainty around global trade tariffs poses a big risk to the Bitcoin price.
- Expectations among Bitcoin investors can be drastically affected by the meeting’s conclusion.
Bitcoin and the digital asset market as a whole are keenly eyed by crypto investors as the Federal Open Market Committee (FOMC) gets ready for its pivotal meeting on March 19, 2025. The Federal Reserve is anticipated to keep interest rates where they are. However, a new factor has emerged that might influence the near-term future of Bitcoin, thanks to President Trump’s proposal of a strategic reserve.
Although there have been whispers of the Fed possibly stopping Quantitative Tightening (QT). No official announcement has been made about this. If QT continues, it may put mild pressure on the cryptocurrency market. Interest in Bitcoin and other risk assets can be rekindled if the Federal Reserve takes a dovish approach in the next months.
All Eyes on Fed
Before next week’s Federal Open Market Committee (FOMC) meeting, which will provide investors further clues about the Federal Reserve’s monetary policy for 2025, Bitcoin price is highly likely to witness high volatility.
According to Ryan Lee, chief analyst of Bitget Research, the increasing macroeconomic uncertainty around global trade tariffs poses a big risk to the Bitcoin price. Which might lead to considerable downward volatility.
The analyst’s remarks follow a few days before the March 19th FOMC meeting. Based on the most recent projections from the CME Group’s FedWatch tool, markets are presently pricing in a 98% probability. That the Fed will maintain its current interest rate policy.
Expectations among Bitcoin investors can be drastically affected by the meeting’s conclusion. Market analysts are predicting that the next breakthrough can occur once investors gain confidence. And the price closes the week over $85,000.
The impending economic releases could dampen Bitcoin’s short-term momentum. But regulatory developments around Trump’s Bitcoin reserve proposal might lead to increasing market optimism. And widespread adoption in the long run.
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