Can Powell’s words revive the encryption markets after the last collapse?

Tldr

• The Federal Reserve is expected to maintain current interest rates (4.25 % to 4.50 %) at today’s meeting
• The focus will be on the potential end of the quantum tightening program (QT), which can support bitcoin and other risk assets
• Federal Reserve Chairman Jerome Powell will speak at 2:30 pm EST after policy decision at 2:00 pm East time
• This meeting is very important amid uncertainty in the market after the recent definitions of President Trump
• The encryption market witnessed a great slowdown, as investors look forward to the Federal Reserve meeting for potential support

Bitcoin investors are looking for today Federal Reserve meeting To help after the last market losses. The Federal Reserve will announce the interest rate decision at 2:00 pm Each time on March 19, 2025, followed by the press conference of President Jerome Powell at 2:30 pm East time.

The central bank is expected to keep the interest rates fixed in the range of 4.25 % to 4.50 %. This rate has not changed since December 2024. But the main focus of encryption monitors will be in the future of the QT tightening program at the Federal Reserve.

Since June 2022, the Federal Reserve has slowly underestimated its public budget. This process followed the massive expansion that occurred during Covid. This expansion helped fuel the bull encryption in 2020-2021.

Minutes of the Federal Reserve meeting, January, showed that officials had talked about stopping or slowing the reduction of the public budget. This has led to speculation that Powell might hint at the end of QT during today’s announcement or press conference.

The end of QT can indicate a new approach to the money policy. This may mean that the Federal Reserve will be ready to resume additional debt purchases if necessary. While the new quantum mitigation (QE) is unlikely to benefit from the additional liquidity from the markets.

Noel Achison, the author of the encryption book, is the macro newsletter, that the end of QT will be in time. This can help avoid problems in the cabinet market, which faces a trillion dollar debt from the next debt this year.

New York Live Live Investment Lauren Judwin shared a similar view. She said that the termination of the surface flow of the public budget earlier, which was expected, could give the markets the positive signal they are looking for.

Increased uncertainty in the market

The Federal Reserve meeting occurs today during an increase period Uncertainty in the market. This uncertainty follows the beginning of US President Donald Trump commercial battles with a new tariff for Mexico and Canada.

These factors, among other things, have contributed to the collapse of the recent encryption market. This collapse eliminated nearly trillion dollars in value in just a few days. The Federal Reserve’s decision on interest rates may affect the investor’s willingness to bear the risks of encrypted currencies.

Analysts believe that interest rates will remain the same

Analysts believe that interest rates will remain at their current levels in March. Previous predictions suggested that the Federal Reserve Bank make discounts at a quarter -point rate in 2025. But the current thinking is that the policy will remain unchanged in this meeting.

Sima Shah, the world’s chief strategy in managing the main assets, explained the potential approach to the Federal Reserve. “The federal reserve is likely to be preferred to wait for them to have a clear policy and a clear vision line in economic expectations,” she said. This indicates that price cuts may not occur until late in the second quarter or even early in the third quarter.

FOMC meeting is a major American economic event. Officials collect eight or more annually to discuss the country’s economic future. The current meeting started on Tuesday 18 March, and concludes today.

At his press conference, Powell is expected to discuss various topics. This includes the interest rate policy in the Federal Reserve, inflation expectations, and a approach to maintaining price stability in the United States

It may also have the risk of stagnation, Economic effects of definitionsMarket reactions, and future monetary policies. FOMC members will also issue updated expectations for GDP growth, inflation, unemployment and federal funds.

Some experts believe that officials may agree to stop QT at this meeting. This will be a major development for the recently struggling encryption markets.

Investors can see Powell’s speech on multiple platforms. This includes the website of the Federral Reserve, the official Livestream on YouTube, the financial news networks such as CNBC, Bloomberg TV, Fox Business and CNN Business.