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

Bittime - The crypto market is again in a tense condition ahead of the Federal Open Market Committee (FOMC) meeting on March 19 2025. So, could the 2025 FOMC Meeting be the trigger for an altcoin season? Follow this article.

The decisions taken at this meeting could be a determining factor in Bitcoin and altcoin price movements in the next few months. Crypto investors and traders are closely monitoring the interest rate policy that will be announced by the Fed. 

Bitcoin is currently still consolidating below the psychological mark of $90,000 (around Rp. 1.47 billion), with the main support level in the range of $75,000 to $80,000 (around Rp. 1.23 billion to Rp. 1.31 billion). 

Meanwhile, altcoins such as Ethereum, XRP, and Stellar (XLM) are also experiencing high volatility. The price of XRP, which is currently still under $3 (around Rp. 49,200), has risen almost 7% in the past week. Likewise, XLM is still staying below local resistance at $0.40 (around Rp. 6,560).

The Impact of the FOMC Meeting on the Crypto Market

Any FOMC decision regarding interest rates, stimulus policies, and future economic guidance could shake up risk asset markets, including crypto. If the Fed takes a dovish approach by lowering interest rates, investors are likely to turn to riskier assets such as Bitcoin and altcoins. 

Conversely, if interest rates remain high or even rise, investors could withdraw capital from the crypto market and shift it to more stable assets such as US government bonds.

In recent months, the Fed has kept interest rates at 4.5% and is expected to make only two cuts in 2025. 

Read also: Best Altcoins to Buy in March 2025: Crypto Investment Guide

In December 2024, the decision to cut interest rates to 4.5% triggered a massive sell-off in the crypto market. However, in January 2025, the market began to recover after the Fed decided not to change interest rates.

Now, ahead of the FOMC announcement on March 20, 2025, the market is again alert to possible policy changes that could lead to an altcoin season or vice versa, a major correction.

How Will XRP and XLM React?

Currently, the prices of XRP and XLM are at important support levels. If the FOMC decision is more dovish than market expectations, the price of XRP has the potential to rise to $3.40 (around IDR 55,760), while XLM could penetrate $0.40 (around IDR 6,560). 

However, if interest rates remain high, the risk of a price correction will be greater, and investors will likely look for assets with lower risk.

Apart from the impact of the FOMC, another factor that could influence XRP movements is the development of Ripple's legal case with the SEC. 

If the final decision is in favor of Ripple, this could be a catalyst for a more significant increase in the price of XRP. With the strong correlation between XRP and XLM, altcoin Stellar is also expected to be pushed upwards.

Read also: 5 Best Altcoins That You Must Watch This February

Jerome Powell and Market Speculation

The Chair of the Fed, Jerome Powell, has a big influence on market sentiment. If in his speech he gives a signal that interest rates will be lowered in the near future, the market could immediately respond with a price spike. 

Conversely, if Powell's remarks are more hawkish, Bitcoin and altcoins may experience further selling pressure.

Currently, many analysts are speculating that Powell will keep interest rates steady at 4.5% for a while. However, with inflation starting to slow, the opportunity to cut interest rates in the second semester of 2025 remains open. 

If this happens, capital flows into the crypto market could increase, triggering an altcoin season and a bullish rally for Bitcoin.

Potential Short Squeeze and Bitcoin Surge

Amid this uncertainty, the crypto market is also facing the potential for a major short squeeze. A Bitcoin short position worth $368 million (around IDR 6.04 trillion) with 40x leverage has caught the attention of the crypto community. 

If the price of Bitcoin manages to break through $85,592 (around IDR 1.4 billion), then this position will be liquidated, potentially pushing the price higher due to sudden buying pressure.

In addition, the latest inflation data shows that prices are starting to stabilize, which means the Fed does not need to be too aggressive in its monetary policy. This further strengthens the possibility of a crypto market rally in the near future.

Read also: Altcoin Season vs Bitcoin Season: History and Signs of the Start of Altseason

FAQ

1. What is the FOMC Meeting?

The FOMC Meeting is a meeting of the Federal Open Market Committee (FOMC) in the United States to determine monetary policy, including interest rates and other economic policies.

2. How will the FOMC Meeting affect the crypto market?

FOMC decisions can affect market liquidity. If interest rates are lowered, risk assets such as crypto tend to strengthen. Conversely, if interest rates remain high or rise, the market could experience selling pressure.

3. Can an altcoin season happen after the 2025 FOMC Meeting?

If the Fed takes a looser policy, then capital could enter the crypto market and trigger an altcoin season. However, if policy remains tight, the altcoin rally could be delayed.

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Reference 

99Bitcoins, Will FOMC Pump Altcoin Markets? XLM Crypto and XRP Price Analysis Pre-FOMC, accessed March 18, 2025.

99Bitcoin, Will Powell Pump Markets This Week: All Eyes on FOMC Crypto Impact, accessed March 18, 2025.

Author: Y