Cryptocurrency Market Holds Steady as Traders Await Federal Reserve Decision
March 18, 2025 – The cryptocurrency market experienced minimal fluctuation on Tuesday, with notable declines in major altcoins such as Dogecoin (DOGE) and XRP, both down approximately 3% over the past 24 hours. This downturn aligns with a broader trend observed within the CoinDesk 20 Index (CD20), which also fell by 2% as it tracks the performance of significant digital assets. The market’s largely subdued movement can be attributed to uncertainty surrounding the upcoming meeting of the Federal Open Market Committee (FOMC), scheduled for Wednesday.
Focus on Monetary Policy
As investors keenly await insights from the Federal Reserve regarding interest rates and monetary policy trajectory, Bitcoin (BTC) traders are particularly focused on how the outcomes could impact the landscape for cryptocurrencies. It is widely anticipated that the Federal Reserve will maintain its current interest rate between 4.25% and 4.50%. However, any signals from Chair Jerome Powell regarding future adjustments could significantly influence risk assets, including Bitcoin and its altcoin counterparts.
Analysts at QCP Capital suggested that while a rate cut on Wednesday is improbable given the broader shift away from fiscal dominance under President Trump’s administration, any dovish guidance could ignite upward momentum for Bitcoin, potentially lifting altcoins along with it. "A dovish signal from Powell could be the catalyst that sparks upside momentum," noted QCP Capital traders in a recent broadcast.
Current Market Sentiment
The sentiment within the market remains cautious, with the crypto fear and greed index currently reading 22—indicating a state of "extreme fear." Agne Linge of WeFi highlighted that macroeconomic uncertainties, including inflation, trade tensions, and geopolitical issues, are contributing to heightened volatility within the market.
In traditional markets, the S&P 500 and Nasdaq Composite indices have also faced challenges, recording their fourth consecutive weekly declines. The Dow Jones Industrial Average fell by 3.1%, marking its worst weekly performance in nearly two years. Linge emphasized that as such uncertainties linger, they are likely to exert downward pressure on Bitcoin prices as well.
Bitcoin’s Position and Market Analysis
Ryan Lee, chief analyst at Bitget Research, provided an insight into Bitcoin’s current trading range, stating that the cryptocurrency is in a consolidation phase. According to Lee, the prospects for Bitcoin heading towards either $75,000 or $90,000 remain equally viable depending on market reactions to the Federal Reserve’s decision.
"Bitcoin’s recent pullback has traders watching key support levels between $82,000 and $85,000," Lee explained. He characterized this phase as a standard post-rally consolidation that serves as a litmus test for the sustainability of recent momentum. He further added that any unexpected developments from the FOMC could disrupt current market dynamics, with a bearish shift potentially driving Bitcoin lower toward the $75,000 to $80,000 range, while a supportive macro backdrop could propel it toward $90,000. As traders remain on edge in anticipation of the Federal Reserve’s decisions and comments, the unfolding scenario will likely set the pace for the cryptocurrency market in the coming days.
About the Author
Shaurya Malwa is the co-leader of CoinDesk’s tokens and data team in Asia, specializing in crypto derivatives, decentralized finance, and protocol analysis. Shaurya holds a diverse portfolio of cryptocurrencies and actively engages in liquidity provision across various decentralized finance platforms.
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