How Will Bitcoin Price React To the FED Rate Hike Decision
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Bitcoin (BTC) has started a new week in a bullish position as it surpassed $28,000, hitting a nine-month high as crypto markets continue to surge amid the ongoing banking crisis in the United States and abroad. The question on everyone’s mind is, where will they go next?
Federal Reserve Meeting Looms
As markets remain volatile, this week promises to be a challenging one, with the Federal Reserve’s meeting on March 22 at the forefront. The Federal Open Market Committee (FOMC) will decide on its next interest rate changes, which many anticipate could affect Bitcoin’s market outlook.
The unfolding banking crisis has put into doubt the Fed’s ability to keep raising interest rates, a policy that some commentators argue could cause further bank failures. Altcoin Daily’s Aaron Arnold is of the opinion that whatever the numbers are, they will swing in favor of crypto.
The Fed is caught between a rock and a hard place, said Arnold, and the decision will likely add to the instability in traditional financial markets. Meanwhile, Bitcoin’s ecosystem is growing stronger than ever, as network fundamentals launch to fresh all-time highs.
Cryptocurrency Prices Slightly Higher Ahead of Fed Meeting
Investors are looking forward to the latest policy decision to come out of the Fed’s March meeting, which will conclude on Wednesday afternoon. I am anticipating that the central bank will raise interest rates by 25 basis points, with a roughly 83% chance of a quarter-point increase, according to CME Group’s FedWatch tool.
While some investors have attributed the recent crypto rally to dwindling confidence in centralized institutions like Credit Suisse and Silicon Valley Bank, others maintain that inflation and Fed policy remain the biggest catalysts for the price of Bitcoin.
Bitcoin Surpasses $28K and Targets $30K
As the week begins, Bitcoin’s value continues to surge, reaching $28,400, according to data from CoinMarketCap.
The pair managed to beat out bears during a consolidation period last week to return to target levels not seen in almost a year, with $30,000, a psychologically significant level surrounded by considerable historical liquidity.
Monitoring resource Material Indicators and others believe that a key support level to hold is the 200-week moving average. At press time, BTC was worth $28,183.
