Bitcoin (BTC) Price Hovers Near $85,000 as Traders Brace for the Federal Reserve's Latest Interest Rate Decision

With risk assets under pressure, markets await clarity from Fed Chair Jerome Powell, whose stance could shape BTC's next move.

Bitcoin (BTC) price hovered near the $85,000 mark on Wednesday, as traders prepared for the latest interest rate decision from the Federal Reserve.

With risk assets coming under pressure, markets looked to clues from Fed Chair Jerome Powell, whose stance could shape Bitcoin’s next move.

Bitcoin Price Holds Above $80K but Faces Resistance

Bitcoin tested critical resistance levels as it climbed past $84,000 ahead of the March 15 Wall Street open.

Data from TradingView showed BTC/USD hitting local highs of $84,358 on Bitstamp.

Despite holding above $80,000 for most of the week, the broader market backdrop remained uncertain. The S&P 500 and Nasdaq Composite Index dropped 4% and 8.7% year-to-date, while Bitcoin lost 10% in the same period.

Analysts at QCP Capital warned that Bitcoin’s support at $80,000 seemed “tenuous at best” amid growing macroeconomic concerns. The firm noted in its latest bulletin,

“We won’t attempt to call the exact moment when the music stops, but in the short term, we struggle to identify meaningful tailwinds to reverse this rout.”

FOMC Decision May Trigger Volatility

The CME Group’s FedWatch Tool placed a 99% probability on policymakers keeping the federal funds rate steady in the 4.25%-4.5% range.

However, Powell’s remarks would be pivotal in determining Bitcoin’s direction.

“A dovish tone that reduces recessionary fears could send Bitcoin price above the 200-day and 21-day moving averages,” said Keith Alan, co-founder of Material Indicators. The two key levels currently stood at $84,995 and $84,350, respectively.

Investor sentiment remained fragile, with Bank of America’s latest survey reporting the largest cut in U.S. equity exposure on record.

Retail traders, however, were increasing their stakes in major tech stocks. The Kobeissi Letter noted that net inflows into Nasdaq 100 stocks had doubled recently, with Tesla (TSLA) and Nvidia (NVDA) being the most popular picks.

$90K For Bitcoin Possible, But Risks Remain

Despite the uncertainty, some analysts, like Markus Thielen, CEO of 10x Research, saw Bitcoin rebounding toward $90,000 if inflation worries abated and the Fed signaled a less hawkish stance.

“There is a good chance the Fed is mildly dovish,” Thielen said, adding,

“We think BTC will be in a broader consolidation range, but we could trade back towards $90,000.”

Others remained more cautious. Ki Young Ju, founder of CryptoQuant, believed Bitcoin’s bull cycle had ended. “Expecting 6–12 months of bearish or sideways price action,” he wrote on X, citing weak on-chain metrics and drying liquidity.

Bitcoin ETF Inflows Continue

Institutional interest in Bitcoin showed modest improvement. According to data from Coinglass, Spot Bitcoin ETFs experienced net inflows of $209.1 million on Tuesday, following a $156.5 million inflow the previous day.

A report by K33 Research highlighted that Bitcoin’s price remained closely linked to broader risk-off sentiment.

The upcoming FOMC meeting was unlikely to alter this dynamic significantly unless Powell signaled a major shift in monetary policy.

Meanwhile, MEXC exchange COO Tracy Jin expected Bitcoin’s price to trade within the $81,000-$86,000 range, with a potential target of $91,000-$92,000.

However, breaking $87,000 quickly was crucial for bulls. Jin added,

“Major geopolitical events and decisions related to ongoing conflicts may have a stronger impact on Bitcoin’s price than U.S. market developments.”

What’s Next For Bitcoin Price

A dovish tone from the Fed could ignite a rally as traders reacted to reduced macroeconomic risks. However, concerns over sticky inflation or a faster-than-expected tightening of liquidity could push Bitcoin’s price lower.

Traders were monitoring $80,000 as key support for Bitcoin, while resistance levels were anticipated around $85,500 and $87,000.

If Powell signaled a potential shift toward rate cuts later this year, traders could see Bitcoin testing the $90,000 resistance. Conversely, if the Fed maintained its hawkish policies, traders might see the price of Bitcoin dropping toward $76,000.