Crypto Market Awaits Fed Decision, Bitcoin Fluctuates Around $85K

The cryptocurrency market is closely monitoring the upcoming Federal Open Market Committee (FOMC) meeting, scheduled to conclude on March 19, 2025. Investors are eagerly awaiting the Federal Reserve’s stance on interest rates, as any adjustments could significantly influence the crypto market. The Federal Reserve is widely expected to maintain the current interest rate range between 4.25% and 4.5% after its March meeting. Despite ongoing speculation about potential cuts, Federal Reserve Chair Jerome Powell has consistently indicated caution in adjusting rates, citing inflation concerns and global economic uncertainties.

Some economists suggest that rate cuts may not occur until later in the year, with projections around June 2025. Powell’s post-meeting press conference at 2:30 p.m. ET is expected to provide further insight into the Fed’s future approach. With the Federal Reserve’s FOMC meeting expected to conclude tomorrow, crypto investors remain on edge about interest rate decisions. While market analysts predict that rates will stay unchanged, uncertainty surrounding inflation, trade policies, and economic growth continues to fuel volatility.

Bitcoin (BTC) has been fluctuating around $85K as the crypto market is in a volatile phase before the FOMC announcement. Many traders believe a crypto market crash could follow if the Fed signals a prolonged period of high interest rates. Higher interest rates usually benefit more traditional types of investments such as bonds and savings accounts, leading to a leakage of capital from riskier assets such as cryptocurrencies. Conversely, rate cuts can boost liquidity and drive more money into speculative assets, including Bitcoin and altcoins.

The Fed has stayed hawkish for a while, keeping rates higher to curb inflation. Under these conditions, the crypto market is struggling, and a lot of investors are expecting relief from rate cuts in 2025. While inflation seems to be cooling, with the U.S. CPI falling from 3.1% to 2.8%, this may not be enough to stop the Fed from easing its policy. If the Federal Reserve signals that rate cuts are approaching, a surge in altcoin prices could follow. This is because increased liquidity would likely encourage higher risk appetite among traders.

However, if the central bank keeps rates high for an extended period, crypto markets may decline. Tightening financial conditions could drive further losses. With investors awaiting Powell’s remarks, the next 24 hours could determine whether the market stabilizes or experiences a crypto market crash.