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The cryptocurrency market is posting mixed price action as investors and traders brace for the outcome of the highly anticipated Federal Reserve meeting.
Investors will be monitoring the Federal Reserve's two-day policy meeting, which begins Tuesday. According to the CME Group FedWatch Tool, officials are forecast to maintain benchmark overnight borrowing rates between 4.25% and 4.50%.
Fed Chairman Jerome Powell has reiterated that the central bank is not keen to lower interest rates. Nonetheless, investors will keenly monitor his comments following the meeting for signs of economic slowdown or monetary policy changes.
Arman ShirinyanHistorically, Fed meetings have had a considerable impact on the cryptocurrency market. Higher borrowing costs and a risk-averse environment drive investors away from speculative assets such as cryptocurrencies, resulting in decreased demand.
Crypto market reacts
Crypto investors were cautious ahead of the Federal Reserve's policy meeting on March 18-19, where interest rates are expected to remain unchanged at the end of the meeting. With this playing a crucial role in market sentiment, Bitcoin, Ethereum and other digital assets are on edge.
Tomiwabold OlajideAt press time, Bitcoin and Ethereum were trading down marginally in the last 24 hours as traders await clear market signals.
XRP, SOL and Shiba Inu fell nearly 4%; Cardano, Dogecoin and Polkadot dropped 3% in the last 24 hours; Cronos lost nearly 10%, while Tron and Toncoin rose 4% within this time frame.
Economic uncertainty and global tensions might aggravate bearish pressure on crypto markets, according to Polymarket participants, with a 51% possibility that BTC closes the week between $81,000 and $87,000.
According to Ki Young Ju, head of crypto analysis firm CryptoQuant, the Bitcoin (BTC) bull market may have come to an end. Ju stated on X that he expects 6-12 months of bearish or sideways price activity as the BTC bull run winds down, citing dwindling market liquidity.
BTC
Vladislav Sopov
Dan Burgin