Bitcoin’s Price Must Exceed $81K to Prevent Volatility Ahead of FOMC Meeting
Bitcoin must close above $81,000 weekly to avoid downside pressure amid upcoming FOMC signals. Current volatility due to macroeconomic factors necessitates careful monitoring. Analysts suggest a close above $85,000 may instill renewed investor confidence. Regulatory developments, such as the Trump Bitcoin reserve bill, may also bolster market optimism.
Bitcoin must secure a weekly closing price above $81,000 to prevent substantial downside volatility preceding next week’s Federal Open Market Committee (FOMC) meeting. This gathering is expected to yield important insights into the Federal Reserve’s monetary policy for 2025. Currently, Bitcoin (BTC) is trading at around $83,748, following a decline of over 3% during the past week, as reported by Cointelegraph Markets Pro.
Chief analyst Ryan Lee at Bitget Research emphasizes the significance of this price threshold, stating that maintaining a close above $81,000 will indicate market resilience. Conversely, a fall beneath $76,000 could trigger increased selling pressure. Lee notes that the imminent FOMC meeting is scheduled for March 19, where there is a projected 98% probability that the Federal Reserve will hold interest rates steady, according to CME Group’s FedWatch tool.
The meeting’s conclusions could greatly influence Bitcoin investor sentiment. “The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,” Lee remarked. He further added, “Even a dovish surprise, like a rate cut, might not be the immediate boost some are hoping for due to ongoing macro uncertainties.”
Despite the challenges, other analysts suggest potential upside for Bitcoin. Enmanuel Cardozo, a market analyst at Brickken, notes that a weekly close above $85,000 might rejuvenate investor confidence and potentially trigger a new market breakout. “Traders and investors alike are keeping a close eye on the $80,000 support and the $85,000–$90,000 resistance,” Cardozo stated, asserting that a move above this resistance could lead to significant upward momentum.
In parallel, recent regulatory developments regarding the proposed Trump Bitcoin reserve may further enhance market optimism. On March 14, US Representative Byron Donalds introduced a bill aiming to establish the Strategic Bitcoin Reserve permanently, which would hinder future administrations from disbanding it through executive action. The bill requires a minimum of 60 votes in the Senate and a House majority to advance, with a favorable environment for cryptocurrencies potentially aiding its passage.
In summary, Bitcoin’s performance hinges on achieving a weekly close above $81,000 to mitigate the risk of downside volatility, particularly with the FOMC meeting nearing. Investors remain cautious as macroeconomic conditions affect Bitcoin sentiment. However, a break above $85,000 may signal renewed optimism among investors, potentially leading to upward movements. Additionally, the proposed legislation concerning a Bitcoin reserve could further stimulate market confidence if enacted.
Original Source: cointelegraph.com
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