The crypto market is closely watching the Federal Open Market Committee (FOMC) meeting, set to conclude on March 19, 2025. Investors expect the Fed to maintain interest rates between 4.25% and 4.5%, but concerns remain over the impact of monetary policy on the market.
Fed Likely to Keep Interest Rates Unchanged
Fed Chair Jerome Powell continues to take a cautious stance on rate adjustments due to concerns about inflation and global economic instability. Some economists predict that a rate cut may not happen until June 2025. Powell’s post-meeting press conference at 2:30 PM ET is expected to provide further insights.
Although interest rates are expected to remain steady, uncertainty surrounding inflation, trade policies, and economic growth keeps the market volatile.
Where Is the Crypto Market Headed?
Bitcoin (BTC) is fluctuating around $85,000 as traders worry about the Fed’s stance. High interest rates often shift capital toward safer assets like bonds, putting pressure on cryptocurrencies. Conversely, if the Fed signals rate cuts, the market could see a strong recovery due to increased liquidity.
For now, the Fed maintains a hawkish stance to control inflation, despite U.S. CPI falling from 3.1% to 2.8%. If high rates persist, the crypto market may face further struggles.
On the other hand, any indication of policy easing could trigger a surge in altcoin prices as investors turn to riskier assets. The next 24 hours will determine whether the market stabilizes or faces a major downturn.
