FOMC Meeting: Crypto Investors Expect Volatility After Fed Decision

The crypto market is facing uncertainty as investors await the Federal Reserve’s interest rate decision. The FOMC meeting on March 19, 2025, will give clues about future rate changes. Many expect the Fed to keep rates the same, but concerns over new tariffs and inflation create doubt. Traders are closely watching Fed Chair Jerome Powell’s speech for any signs of a shift in policy.

Bitcoin and Ethereum have already dropped ahead of the meeting, showing how sensitive the market is to economic news. If Powell suggests rate cuts, crypto prices could surge. But if uncertainty remains, more volatility is expected. Investors are preparing for big price swings as they react to the Fed’s next move.

Crypto Market Slips as Investors Await Fed’s Interest Rate Decision

The cryptocurrency market is on edge as the Federal Open Market Committee (FOMC) meeting approaches on March 19, 2025. Investors watch Federal Reserve Chair Jerome Powell’s speech for hints about future interest rate decisions. The Fed is expected to keep interest rates unchanged, but uncertainty remains due to recent tariff policies impacting the U.S. economy.

As a result, crypto prices have taken a hit, with Bitcoin and Ethereum leading the downturn. However, analysts believe Powell’s remarks could drive major price swings in Bitcoin and altcoins. If he hints at future rate cuts, Bitcoin could break new highs, while uncertainty may lead to short-term volatility.

Bitcoin Holds Strong Amid Declines

Bitcoin dropped by 2.09% yesterday, closing at $82,577.24. In the last 24 hours, it fell another 0.35%, now trading at $82,579.96 .

Ethereum also declined, dropping from $1,935.77 to $1,886.92 in a day, marking a 2.52% loss. In the past 24 hours,   now priced at $1,899.72.

Despite this, Bitcoin has shown resilience. After dropping to $76,000, it has bounced back near $83,000. Analysts believe if Powell hints at rate cuts, Bitcoin could surge past $85,000 and even approach $90,000. Market analyst Obez stated, "If Powell's speech is dovish, Bitcoin could very well break past the resilient $83,000 mark."

Federal Reserve’s Impact on Markets

The FOMC meeting on Tuesday and Wednesday will play a key role in shaping market trends. Currently, the federal funds rate remains at 4.25%–4.5%. With US inflation dropping from 3% to 2.8% in February and expected to fall further, analysts predict the Fed will maintain its cautious stance on rate changes.

However, new tariffs imposed on China, Mexico, and Canada by former President Donald Trump have added pressure to the economy. Some analysts fear these tariffs could drive inflation higher, delaying any interest rate cuts.

Potential Impact on Crypto Market of JFK Files Release in then  FOMC Meeting

The release of the remaining JFK assassination files could briefly impact the crypto market. If the files fuel political distrust or expose hidden operations, markets may react with volatility. Investors might turn to Bitcoin as a safe haven.

Government transparency debates often boost interest in decentralized assets. If trustin institutions weakens, crypto could gain support. However, unless the documents affect global policies, any impact will likely be short-lived and based on sentiment rather than real change.

FOMC Days Bring Volatility

Historically, FOMC meetings cause significant price swings in crypto markets. On average, Bitcoin’s price fluctuates by 1.54% on FOMC days, much higher than on normal trading days.

Traders are prepared for big moves, whether upward or downward, depending on Powell’s tone and the market’s reaction.

Conclusion

The FOMC meeting is set to play a crucial role in shaping crypto’s next move. If Powell hints at future rate cuts, Bitcoin could break new highs, while uncertainty may lead to short-term volatility. All eyes are on Powell’s speech as traders brace for a potentially game-changing moment in the crypto market.