Bitcoin Price Bounce Back With Fed Meeting: Will Crypto Market Recover?

After falling to a low of $61,000 yesterday, Bitcoin price finally recovered after the Federal Reserve meeting. Bitcoin's recent bearish nature was due to this fed facing pressure due to its impact on the cryptocurrency market. These meetings are intended to discuss current interest rates and implement new policies.

Bitcoin price analysis

He bitcoin price It is currently $67,070 after a 9% increase from yesterday's conditions, marking a decent recovery. Compared to the previous weeks' data, it is still down almost 8%. Bitcoin has set a new all-time high of $73,750.07 and was forecast to advance towards the $80,000 mark. Instead, the price of Bitcoin fell from $67,626 to $61,164 in one day.

A random bearish trend hit the cryptocurrency market, where all cryptocurrencies suffered greatly, losing their weeks of gains. Even Bitcoin fell to $61,164, which was the lowest point so far this month.

March Federal Reserve Meeting Updates

The Federal Reserve meeting ended on a positive note, where no changes were made to interest rates. It has regained the bullish nature of cryptocurrencies, which has caused a rise in Bitcoin prices. The Federal Open Market Committee (FOMC), which organizes these Fed meetings, has maintained the background rate between the range of 5.25% to 5.50%, keeping it constant during the last five meetings. However, the FOMC revealed its expectations for three rate cuts this year.

Wednesday's report mainly highlighted the expansion of the US economy, the low unemployment rate and the rising inflation rate. The official has moved forward with his 2% CPI inflation target, last seen in February 2021. The official statement reads:

The Committee does not expect it to be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably towards 2 percent.

As included in the December projections, the Federal Reserve expects the lowest interest rate, comparatively three times lower, to reach 4.6% by the end of the year. However, market prices could suffer a first cut in June, as there is a 60% probability of that happening.

Based on Bitcoin's performance around these meetings, it is clear that the Federal Reserve meeting has an impact on the cryptocurrency market due to its impact on the value of the dollar and monetary policies related to cryptocurrencies.

Signs of Bitcoin Price Recovery with Bulls

As Bitcoin has already recovered from the price drop, the charts predict stability around this value for the next few days, with an advance to cross another ATH mark by the end of the month. With the rise in Bitcoin price, Bitcoin's new resistance lies between $69,000 and $73,000, and the support is assumed to be around $65,000.

Another thing that will help increase the price is the Halving Bitcoin, which is just a few more days away. According to the predictions of many analysts, Bitcoin is expected to reach the $80,000 mark before the halving, where the Bitcoin will play an important role. According to Guy Turner of the Coin Bureau, the price of Bitcoin will be between $130,000 and $180,000 before the end of the year.

With Bitcoin's recovery, the rest of the cryptocurrency market is also experiencing a surge where altcoins have outperformed Bitcoin. Major cryptocurrencies are rising, such as Ethereum (11.10%), Solana (12.26%), BNB (5.92%), Dogecoin (17.58%), Floki Inu (37.5%), JasmyCoin ( 19.79%) and many more.

Also read: Will Bitcoin Reach $80,000 Before Halving?

Conclusion

The cryptocurrency market crash amid the Fed meeting ended with no interest rate changes. Thanks to that, Bitcoin price finally recovered to the $67,000 range, and the rest of the altcoins are rising. From here, the Bitcoin ship heads towards the record ATH to advance towards $80,000 before the halving.