Impact of Federal Open Market Committee (FOMC) on Crypto

Bittime - The Federal Open Market Committee (FOMC) is a committee in the Federal Reserve system that has an important role in determining United States monetary policy. 

The decisions made by the FOMC not only affect traditional financial markets, but also have a significant impact on crypto assets. Read this article to find out more!

Impact of FOMC: Interest Rate Decision 

Currently, attention is focused on the March 19 FOMC meeting. Analysts predict that the Fed will maintain its benchmark interest rate. Based on market prices, there is approximately a 99% probability that interest rates do not change. 

However, what investors are most concerned about is not only the interest rate decision, but also the reforman Dot Plot, yang reflects projections of future interest rate policy by Fed policymakers.

Although expectations indicate no change in interest rates this time, projections of future interest rate cuts could determine the direction of market movements. 

Many market players predict that the Fed will cut interest rates one to three times in 2024. If the cuts are made three times, it could be a positive dovish signal for risk assets like Bitcoin. 

Meanwhile, two cuts would be considered a neutral scenario. If there is only one cut or none at all, the market may react negatively as it indicates that tight monetary policy will last longer.

Read Also: FOMC Meeting Will Influence Crypto Market: How Will Bitcoin Price Movement? 

Impact of FOMC: QT and QE Policy

Federal Reserve Chairman Jerome Powell is scheduled to give a press conference about 30 minutes after the announcement of the interest rate decision. Investors are also waiting for a decision on policy Quantitative Tightening (QT). 

If Powell signals that the Fed will soon end QT or switch back to Quantitative Easing (QE)—central banks are buying assets again to add liquidity—then the crypto market will likely surge.

Technical analyst, Kyledoops, revealed that the market has already priced in a 100% possibility of the Fed ending QT before May. If Powell gives even the slightest hint about the possibility of QE, the market will move very quickly.

Meanwhile, the potential for volatility will be very high after the FOMC decision. Bitcoin currently has a large liquidation cluster at the $81,640 and $84,800 levels, which means price movements can be very fast in either direction after the FOMC announcement.

Impact of FOMC on Bitcoin Price 

Anal predicts that Bitcoin price will remain fluctuating in a sideways pattern until the FOMC announcement. The market is likely still in consolidation mode and could experience significant movement after the decision is announced. 

The $80,900 level is an attractive area for traders looking to take long positions, while a stronger bullish scenario could occur if Bitcoin manages to break above the weekly open, with a target of $87,000.

Read Also: 2025 FOMC Meeting Will Trigger Altcoin Season and Pumping Crypto Market? 

Long-Term Impact of FOMC on Crypto Markets

The FOMC decision is not only influential in the short term, but also determines the direction of the crypto market movement in the long term. 

If the Fed continues to maintain tight monetary policy for a long time, market liquidity could decrease, thereby suppressing the price of Bitcoin and other crypto assets. 

On the other hand, if there are signals that the Fed will return to implementing looser policies, such as lowering interest rates or even returning to Quantitative Easing (QE), then the crypto market could experience a big spike.

SAs long as there are no major surprises from the FOMC meeting, Bitcoin prices will likely remain sideways until the end of March. However, if there is a big announcement, the crypto market can experience sudden spikes.

Read Also: Crypto ETFs 2025: Crypto Assets That Have the Potential to Be Approved by Regulators 

Cryptocurrency FAQs

What is Cryptocurrency?

Cryptocurrencies are digital assets that use blockchain technology to secure transactions, control the creation of new units, and verify asset transfers. Examples of the most popular cryptocurrencies are Bitcoin and Ethereum.

Apa Cryptocurrency Aman?

Cryptocurrencies are relatively safe because they use blockchain technology, but remain vulnerable to hacking if not stored properly. Use a secure digital wallet and avoid sharing passwords for extra security.

Is Cryptocurrency Legal in Indonesia??

Cryptocurrencies are legal in Indonesia as digital assets and can be traded on platforms registered with CoFTRA. However, cryptocurrency has not been recognized as a legal means of payment in Indonesia.

How to Buy Crypto with 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.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

Bitcoinist, FOMC Preview: Bitcoin At Risk As Fed Prepares Market-Shaking Decision, accessed March 19, 2025.

99 Bitcoin, FOMC Interest Rates Decision 2025: What It Means for Crypto, accessed March 19, 2025.

Author: IPR