Prominent Chinese crypto journalist and blogger Colin Wu, who often shares an inside perspective on the cryptocurrency space on X/Twitter, has reminded the community that the scheduled FOMC meeting will take place later this week.
Prominent Chinese crypto journalist and blogger Colin Wu, who often shares an inside perspective on the cryptocurrency space on X/Twitter, has reminded the community that the scheduled FOMC meeting will take place later this week.
During this event, the US Federal Reserve will make a fundamental announcement that will likely affect the future price movement of Bitcoin.
Interest rate decision approaching
According to the tweet published by the aforementioned insider, during the FOMC meeting scheduled for Wednesday, March 20, the president of the United States Federal Reserve, Jerome Powell, will announce the Federal Reserve’s decision on the interest rate.
However, data released by the CME platform hints that the Federal Reserve is likely to leave the interest rate unchanged; The probability of this decision is high, 99%.
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The Federal Reserve’s interest rate has a major impact on financial markets, including that of crypto assets, and in anticipation of this year’s first rate announcement, concerns from the cryptocurrency community about the future price behavior of Bitcoin are rising.
In recent years, the Federal Reserve has been tightening rates in an attempt to control rising inflation. However, last year, Jerome Powell began hinting that it may be time to start easing interest rates. As the date of this announcement approached, the price of Bitcoin continued to rise in anticipation of the upcoming Bitcoin halving, due to the high daily BTC purchase rate set by ETFs and in anticipation of the Reserve Federal will begin cutting rates this year.
Traditionally, rate tightening by the Federal Reserve has a negative impact on the prices of risky assets, including Bitcoin, and rate loss allows an influx of funds into BTC, driving the price higher.
Bitcoin rallies over the weekend
Last week, the world’s flagship cryptocurrency, Bitcoin, hit another new all-time high for the month, this time reaching $73,750. However, after reaching such a high number, BTC suddenly reversed to show a 12% correction and reached $64,908 on Sunday.
So far, the BTC price has seen a 5% recovery, but it was followed by another 1.31% drop. bitcoin can now be traded at $67,926 at the time of writing this article.
