Crypto Market on Edge as Fed Meeting Arrives: Details

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The cryptocurrency market shows mixed price movements as investors and traders await the outcome of the Federal Reserve's highly anticipated meeting.

Investors are closely watching the Fed's two-day policy meeting, starting Tuesday. The CME Group FedWatch Tool predicts officials will keep benchmark overnight borrowing rates at 4.25% to 4.50%.

Fed Chairman Jerome Powell has reiterated the central bank's reluctance to lower interest rates. However, investors will scrutinize his post-meeting comments for any indication of economic slowdown or shifts in monetary policy.

Historically, Fed meetings significantly impact the cryptocurrency market. Higher borrowing costs and risk aversion typically deter investors from speculative assets like cryptocurrencies, reducing demand.

Crypto Market Reaction

Crypto investors adopted a cautious stance before the Federal Reserve's March 18-19 policy meeting, where interest rates were expected to remain unchanged. This significantly influenced market sentiment, leaving Bitcoin, Ethereum, and other digital assets vulnerable.

At the time of writing, Bitcoin and Ethereum showed slight declines over the past 24 hours as traders await clearer market signals. XRP, SOL, and Shiba Inu fell nearly 4%; Cardano, Dogecoin, and Polkadot dropped 3% in the last 24 hours; Cronos lost almost 10%, while Tron and Toncoin rose 4% during the same period.

Economic uncertainty and global tensions may exacerbate bearish pressure on crypto markets, according to Polymarket participants, who assign a 51% probability to BTC closing the week between $81,000 and $87,000.

Ki Young Ju, head of crypto analysis firm CryptoQuant, suggests the Bitcoin (BTC) bull market may have concluded. Ju stated on X that he anticipates 6-12 months of bearish or sideways price action as the BTC bull run concludes, citing decreasing market liquidity. Read the original article on U.Today