Connect with us

Coin Market

Bitcoin runs toward $86K after Fed maintains course, projecting two rate cuts in 2025

Published

on

Bitcoin (BTC) price action turned bullish on March. 19 as markets grew anxious for the release of the Federal Open Market Committee (FOMC) minutes and a press conference from Federal Reserve Chair Jerome Powell. 

BTC/USDT 1-day chart. Source: TradingView

Generally, traders keep a close eye on FOMC minutes, along with Powell’s comments, to obtain direct insights into the Fed’s take on US economic health, along with their plans for monetary policy and interest rates. 

In the presser, Powell confirmed that the Fed intends to leave interest rates unchanged, in its target range between 4.25% to 4.5%, where they have been since December 2024. 

Although the Fed downgraded its outlook for economic growth and emphasized that tamping inflation remains a sticking point, the Fed’s statements largely align with market participants’ expectations. 

Crypto and equities traders have also been forecasting the reduction of the Fed’s monetary policy of quantitative tightening (QT), and the FOMC minutes confirmed that the central bank will reduce “the monthly redemption cap on Treasury securities from $25 billion to $5 billion.”    

 

Changes to FOMC statement (in red). Source: FederalReserve.gov

Related: Bitcoin price volatility ramps up around FOMC days — Will this time be different? 

In response to Fed statements, Bitcoin price added to its daily gains, rallying to an intraday high at $85,950 at the time of writing. 

The DOW also added 400 points, while the S&P 500 index added 77. Powell and Fed policymakers’ verbal commitment to two additional rate cuts in 2025 also aligns with crypto traders’ expectations and could further buoy the current recovery in Bitcoin price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Coin Market

Robinhood in talks with Crypto.com over prediction markets: WSJ

Published

on

By

While prediction market companies in the US continue to face legal battles between state and federal authorities, Robinhood is reportedly considering expanding its services.

Continue Reading

Coin Market

Bitcoin advocacy group to join US State Department’s ‘digital freedom’ program

Published

on

By

The Bitcoin Policy Institute and three partner organizations will be able to send employees to work alongside State Department officials to address issues including digital freedom.

Continue Reading

Coin Market

Wise expected to resubmit US charter application under GENIUS

Published

on

By

The OCC denied the UK company’s application this week citing AML/CFT risks, despite approving similar charters for digital asset companies in the last year.

Continue Reading

Trending