Bitcoin is shaking. The black beast of crypto investors rears its threatening snout – the FED. In March 2024, a summit meeting will seal the fate of Bitcoin. Rise ? Drop ? There is uncertainty. Traders are holding their breath. The queen of cryptocurrencies is in danger.
Eyes on Federal Reserve meeting
On March 19, all eyes will be on Washington DC. The Federal Open Market Committee will meet there for a resounding decision. On March 20 at 2 p.m., the target federal funds rate will be announced. 5.25% to 5.5% currently, unchanged? Certainly. But after ?
Bitcoin follows the movement, happenmodaft from the slightest sign. Jerome Powell, Chairman of the Fed, will hold a press conference at 2:30 p.m. Every word will be dissected. Analysts will dissect the Fed’s “economic projections”. The bond market is impatient.
According to the CME’s FedWatch tool, the first rate cuts are expected in June or July. Three or four months by the end of 2024? Speculation is rife. Board of Governors member Michelle Bowman urges caution. “Cut rates too soon? We risk having to raise them to control inflation. »
Inflation, executioner of bitcoin
Inflation haunts Bitcoin investors. In February 2024, the CPI showed 3.2% year-on-year, well above the FED’s 2% target. The January PCE index, favored by the FED, showed 2.4%. Too high to commit to lowering rates.
However, encouraging signs are emerging. Inflation slows significantly after the peaks of 2022. But in January and February 2024, the monthly data climbs to 0.3% and 0.4%, respectively. Enough to worry the FED which is aiming for 0.1 to 0.2% per month.
The Atlanta FED’s inflation forecasts for March are somewhat reassuring with 0.2% anticipated. Enough to convince the FED that a rate cut is justified? A headache for decision-makers.
The future of Bitcoin depends on it. The queen of cryptocurrencies follows the inflation trend. Too high ? The FED is curbing enthusiasm with high rates. Mastered? The way is clear for a revival of the crypto market.
In March 2024, Bitcoin will play big. The Fed meeting will mark a decisive turning point. Will it maintain the course of monetary tightening? Or will it send out the long-awaited signal of future relaxation? Every movement, every piece of data will be scrutinized. The future of Bitcoin follows from this. A new era could dawn for the crypto queen. Or another winter for investors? The world will hold its breath. On March 19 and 20, the FED will decide…
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