There will be an upcoming Federal Open Market Committee (FOMC) meeting on Tuesday that might have an important influence on the price of Bitcoin. This March 20, marked quite a milestone for Bitcoin (BTC) as the world’s largest cryptocurrency surged past $28,000. This feat has not been achieved since June 2022, indicating a strong bullish sentiment around crypto.
Having said that, Bitcoin has experienced a decrease in value over the previous day, currently trading at $27,891 with a market capitalization of $538 billion. But, it can still be expected for the price to reach $30,000 in the near future, though the fate of the cryptocurrency may be determined by the Federal Reserve meeting on Tuesday, March 21.
So now #Bitcoin waits for the reaction to the FOMC this Wed. Likely to keep playing in this 26.5-28.5k range until then.
I'm expecting the rates to keep going up despite the stealth QE, & markets to sell off. The Q for me is how deep the correction will be? pic.twitter.com/UgBOJHVSVJ
— AlphaBTC (@mark_cullen) March 21, 2023
Feds Come into Play
The Federal Reserve’s next move will have a critical influence on the response of US equities and digital currencies. On one hand, it is striving to contain inflation, while at the same time, the intensifying banking crisis has necessitated another $300 billion stimulus into the economy. This has ultimately reversed all the prior Fed’s contractionary steps taken in the past six months.
At the upcoming Federal Open Market Committee (FOMC) meeting, it will become evident whether the Fed has shifted its focus to quantitative easing or has opted for an additional 25 basis point rate hike. Despite the recent Credit Suisse incident, the ECB chose to raise rates by 50 basis points, indicating that inflation is a priority for the central bank.
The Future of Bitcoin (BTC)
Recently, Bitcoin is confronting pretty stiff resistance at $28,000 to the upside. Meanwhile, the key support at $27,000 remains intact on the downside. However, the Bitcoin supply on various exchanges has recently seen a sharp rise over the past week, suggesting a potential selling pressure for BTC in the near future.
— Ali (@ali_charts) March 20, 2023