Top Cryptos Show Slight Gains Ahead of FOMC Decision
Bitcoin, Ethereum, and XRP saw minor gains on Wednesday as traders prepare for the U.S. FOMC rate decision at 2 PM ET. Unlike past bear markets,traders now experience shorter bear cycles followed by rapid price rallies.
The upcoming FOMC meeting could bring higher volatility to these top cryptos. This could create buy-the-dip opportunities or profit-taking chances amid the ongoing bear market.
Traders of Bitcoin,Ethereum,and XRP have become more cautious.In the past 24 hours, their activity in the derivatives market has decreased. Coinglass data shows a drop in trade volume for BTC and ETH by nearly 11% and 7%, respectively. XRP’s trade volume fell by almost 14%.
Coinglass also reports nearly $89 million in liquidations in the past 24 hours for these top cryptos, indicating a risk-averse stance among traders.
On-chain analysis from Santiment reveals mixed signals. Bitcoin’s Binance funding rate has been positive for three days, suggesting a bullish outlook. However, Bitcoin’s supply held by funds has decreased. Ethereum’s whale supply remains stable, while XRP’s active addresses have risen.
These on-chain metrics suggest a slightly bullish trend for Bitcoin and XRP. Ethereum’s price may stay stable or unchanged.
Bitget CEO Gracy Chen believes Trump’s pro-crypto stance is confusing traders. The idea of a U.S. strategic Bitcoin reserve is gaining ground. Chen predicts Bitcoin won’t fall below $70,000 and could reach $200,000 in the next 1-2 years.
The FOMC interest rate decision looms,with a higher rate hike likely.
Fed Decision Could Influence Crypto Prices
The upcoming Federal Open Market Committee (FOMC) meeting on March 19, 2025, may cause price swings in the crypto market. Analysts predict the federal funds rate will stay at 4.25%-4.50%. Ryan Lee, from Bitget Research, shared insights with Crypto.news. He expects the Fed to be cautious, focusing on inflation and economic growth.
Lee suggests that if the Fed hints at future rate cuts, it could boost risk appetite and lift Bitcoin and ethereum. Conversely, a hawkish stance could lead to a market dip. Despite this, Bitcoin’s resilience and supportive policies may lessen the impact. Traders should prepare for volatility.
Lee notes that Bitcoin might trade between $80,000 and $86,000.Ethereum could range between $1,800 and $2,100. These forecasts reflect the market’s reaction to macroeconomic signals.
Bitcoin is showing signs of recovery.
