Bitcoin surged past $84,000 on March 19 as traders prepared for the latest U.S. Federal Reserve interest rate decision. Data from TipRanks showed local highs of $84,358 before markets settled just under that level. However, analysts warn that Bitcoin’s fate hinges on Fed Chair Jerome Powell’s comments and potential economic shifts.
The Federal Open Market Committee (FOMC) is widely expected to keep interest rates unchanged until at least June, according to CME Group’s FedWatch Tool. The real focus is on Powell’s tone. Analysts at QCP Capital stated, “Tonight’s FOMC meeting is highly likely to hold rates steady. However, we will be watching closely for any dovish shifts, particularly on growth and inflation expectations.”
Bitcoin Faces Risk of a Sharp Drop
While Bitcoin has held above $80,000 this week, its position is far from secure. The S&P 500 and Nasdaq Composite Index are both down significantly year-to-date, trailing behind Bitcoin’s 10% rise in the same period. But traders at QCP Capital see troubling signs, saying, “We struggle to identify meaningful tailwinds to reverse this rout.”
A more hawkish Fed could mean trouble. Material Indicators co-founder Keith Alan warned that bad news from Powell could lead to Bitcoin dropping toward $76,000. On the flip side, a dovish stance could push prices higher, helping Bitcoin reclaim key moving averages and avoid a “death cross” between the 21-day and 200-day moving averages.
Ether Leads Market Gains, Gold Breaks $3K
While Bitcoin consolidates, Ethereum (ETH-USD) jumped 7% in the past 24 hours, outpacing major cryptocurrencies. Other assets saw mixed movement, with Dogecoin (DOGE-USD) climbing 4% and Solana (SOL-USD) rising 3%. Meanwhile, gold (CM:XAUUSD) soared above $3,000 for the first time, reinforcing its safe-haven appeal amid market uncertainty.
At the time of writing, Bitcoin is sitting at $84,026.
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