FOMC Meeting Will Affect Crypto Market: How Will Bitcoin Price Move?

Bittime - The Crypto Market is preparing for the impact of the FOMC Meeting that will take place soon. Bitcoin (BTC), which had corrected below $100,000, rallied back to $102,000 by the end of January 2025. With the interest rate decision to be announced by the Fed, BTC price movements are the main concern of investors.

The market expects the Federal Reserve to most likely keep interest rates at 4.25%-4.50%. However, the policy direction Jerome Powell takes could trigger significant volatility in the digital asset market.

FOMC and its Impact on Crypto Market

The FOMC meeting is a crucial moment for the Crypto Market because interest rate decisions affect global liquidity. If the Fed signals an interest rate cut, risky assets such as Bitcoin (BTC) may experience a price surge. Conversely, a tighter or hawkish policy could depress the price of BTC and other digital assets.

Also read: Bitcoin Price Prediction Today January 29

At its December 2024 meeting, the Fed signaled a more cautious approach in lowering interest rates. The main factors considered are economic data and inflation. Therefore, the FOMC decision this time will be an important indicator for the direction of the Crypto Market movement in 2025.

Bitcoin (BTC) Price Prediction After FOMC Meeting

Currently, Bitcoin (BTC) is still moving in the range of $100,000-$104,000. Analysts expect two main scenarios after the FOMC Meeting:

Bullish Scenario: If the Fed is dovish and leaves the door open for a rate cut, BTC could surge above $107,000. A break of this level could potentially take BTC back to record highs above $110,000.

Bearish Scenario: If the Fed remains hawkish or signals further rate hikes, BTC could drop to $94,000 or even lower to $88,900.

Investor Strategies in the Face of Crypto Market Volatility

Digital asset investors need to consider the right strategies to deal with post FOMC Meeting volatility:

Hodling: For long-term investors, short-term volatility is not a big deal. Bitcoin still has future growth prospects.

Also read: Is Altcoin Season Over? Here's the Analysis!

Short-Term Trading: Traders can take advantage of the volatility to make profits by monitoring BTC's support and resistance levels.

Portfolio Diversification: Allocating funds to other assets such as Ethereum (ETH) or stablecoins can reduce the risk from BTC price fluctuations.

Conclusion

The FOMC meeting will be a major factor affecting the Crypto Market, especially the price of Bitcoin (BTC). The Fed's decision on interest rates could have a significant impact, either in the form of a price spike or a further correction.

Investors are advised to follow monetary policy developments closely in order to make informed investment decisions.

FAQ

What impact does the FOMC Meeting have on the Crypto Market?

The FOMC meeting can affect the crypto market through interest rate policy. If interest rates are fixed or lowered, Bitcoin (BTC) and other digital assets tend to rise. Conversely, a tighter policy could depress the price of BTC.

Will Bitcoin (BTC) price rise after the FOMC Meeting?

The price movement of BTC after the FOMC Meeting depends on the Fed's statement. If dovish policies are implemented, BTC could rise. However, if there are hawkish comments, market volatility could increase.

How can investors deal with volatility after the FOMC Meeting?

Investors can manage risk with diversification strategies, use stop-losses, and follow market developments and Fed policies to make wiser investment decisions.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

References

cryptobriefing.com, Bitcoin clings to 100K ahead of tomorrow's FOMC meeting, accessed on January 29, 2025.

cointelegraph.com, Bitcoin preps for FOMC comments as BTC price coils near $103K, accessed on January 29, 2025.

Author: AWW