Federal reserve rates can cause Bitcoin’s collapse this week

Bitcoin, the largest encrypted currency in the worldHe achieved great success on Monday, and fell to $ 83.191 a week after fixed losses. With the presence of the market already on the edge of the abyss, all eyes are now in the American Federal Reserve Reserve The interest rate decision.

Will the Federal Reserve Declaration lead to relief to Bitcoin or pushing it less?

Most analysts expect the Federal Reserve to maintain interest rates unchanged, just as it did in January. Because bitcoin often leads to wider EncryptionThis decision can have a significant impact on prices.

Will the Federal Reserve keep fixed rates?

The Federal Reserve Policy meeting will cover from March 18 to 19, the economic data for February. According to Fedwatch for the CME groupThere is a 98 % chance that the prices remain the same.

The next step for Bitcoin depends on how it appears at the main price levels:

• Above 81,000 dollars: If Bitcoin remains above this level by weekly closure, it may indicate strength.
• Less than $ 76,000: The decrease to less than this can lead to more pressure.
• More than 85,000 dollars -90,000 dollars: A strong closure in this range can increase confidence and possibly raises a crowd.

How does the US dollar affect Bitcoin

The US dollar plays a decisive role in Bitcoin price a movement. The currency index decreased in dollars (DXY), which usually helps most dangerous assets such as encryption. The dollar often pushes the weakest investors towards alternative assets, including bitcoin.

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Global liquidity and the impact of the federal reserve

Besides interest rates, global liquidity is another major factor. Central banks worldwide, including the Fed, increases the width of cash to support their economies. More liquidity generally pays asset prices up, including stocks, real estate and encryption.

If the Federal Reserve indicates an extent to its efforts to tighten the money supply, the encryption market may interact positively.

Ethereum and altcoins

ETHEREUM (ETH) was under pressure, losing 9 % a week. You are now trying to stay over $ 1900 and prepare about $ 2000. Another concern is the decrease in the user’s activity in Ethereum, as daily active users decreased from more than 700,000 earlier this year to only 293,000.

Other main altcoins, including Solana (Sol), XRP, Cardano (ADA) and TON (TRX) have seen sharp declines. Many experts believe that future federal reserve prices can raise a strong recovery of the encryption market.

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