Reserve

Bitcoin

<p>Bitcoin is trembling. The bane of crypto investors has shown its menacing snout – the FED. In this March 2024, a paramount meeting will seal the fate of Bitcoin. Upturn? Downturn? Uncertainty looms. Traders hold their breath. The queen of cryptocurrencies is in peril.</p>
<h2 id="h-eyes-fixed-on-the-federal-reserve-meeting">Eyes fixed on the Federal Reserve Meeting</h2>
<p>On March 19, all eyes will be on Washington D.C. The Federal Open Market Committee will gather for a groundbreaking decision. On March 20 at 2 pm, <a href="https://www.cointribune.com/en/bitcoin-imminent-impact-of-the-feds-interest-rate-reduction/" target="_blank" rel="noopener noreferrer nofollow">the target rate</a> for the federal funds will be announced. Currently, it’s at 5.25% to 5.5%, unchanged? Likely. But what about after that?</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>Bitcoin follows the <a href="https://twitter.com/bitcoinfear/status/1769317794129293520?s=46&amp;t=zj7ICl0Lw9vdTKh741lFIQ" target="_blank" rel="noopener noreferrer nofollow">movement</a>, react instantly to the slightest sign. Jerome Powell, chairman of the Fed, will hold a press conference at 2:30 pm. Each word will be dissected. Analysts will pored over the Fed’s “economic projections.” The bond market is twitching with impatience.</p>
<p>According to the CME’s FedWatch tool, the first rate cuts are expected in June or July. Three to four months by the end of 2024? Speculation is rife. Michelle Bowman, a member of the Board of Governors, advocates caution. “Reducing rates too soon? We risk having to raise them again to control inflation.”</p>
<h2 id="h-inflation-the-executioner-of-bitcoin">Inflation, the executioner of Bitcoin</h2>
<p>Inflation haunts Bitcoin investors. In February 2024, the CPI posted 3.2% over a year, well above the FED’s 2% target. The PCE index for January, preferred by the FED, showed 2.4%. Too high to commit to lowering rates.</p>
<p>Yet, promising signs emerge. Inflation is significantly slowing down after the peaks of 2022. But in January and February 2024, the monthly data climbed to 0.3% and 0.4% respectively. Cause for concern for the FED aiming for 0.1 to 0.2% per month.</p>
<p>The FED’s March inflation forecasts from Atlanta are somewhat reassuring with 0.2% anticipated. Enough to convince the FED that a rate cut is justified? A conundrum for decision-makers.</p>
<p>The future of Bitcoin depends on it. The queen of cryptocurrencies follows the trend of inflation. Too high? The FED puts the brakes on with high rates. Under control? The way is clear for a crypto market resurgence.</p>
<p>In March 2024, Bitcoin will be at stake. The Fed meeting will mark a decisive turning point. Will it maintain the course of monetary tightening? Or will it send the long-awaited signal of an upcoming easing? Every move, every piece of data will be scrutinized. Bitcoin’s future depends on it. A new era could open for the <a href="https://www.cointribune.com/en/bitcoin-on-fire-the-fed-announces-a-drastic-drop-in-future-interest-rates/" target="_blank" rel="noopener noreferrer nofollow">crypto queen</a>. Or will it be yet another winter for investors? The world will be holding its breath. On March 19 and 20, the FED will decide…</p>

Fluctuating Interest Rates: The Uncertain Path Ahead for Bitcoin

Table of Contents

Cointribune EN

Other articles published on Mar 18, 2024

Coinbase Exec Sees Crypto Rivaling Visa as 117 Million Transactions Hit Blockchains

Omniwars Launches a Gaming Universe, Empowering Players with Fantasy Hero Adventures.

Solana’s market resilience tested amid network challenges

Groundbreaking New AI Trading Bot Hits $1M Raised in ICO (18 Mar)

Polkadot Blockchain Academy Introduces Remote Learning Option

Mid-March Momentum Boosts Kelexo (KLXO) Presale as TRON (TRX) and Litecoin (LTC) Community Shows ...

Join our free newsletter for daily crypto updates!