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

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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.

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