Bitcoin (BTC) Price Prediction: FOMC Meeting Could Send BTC to $95,000

Bitcoin recently fell below $77,000 but recovered to $83,000 amid market uncertainty and liquidations.

Bitcoin recently dipped below the $77,000 mark but quickly recovered to trade above $83,000 as market uncertainty and a series of liquidations kept traders on edge.

This week, all eyes are on the Federal Open Market Committee (FOMC) meeting, which could significantly impact Bitcoin’s price.

The FOMC is expected to keep interest rates steady at 4.25%-4.5%, a decision that could drive investor confidence in riskier assets like Bitcoin.

Bitcoin Has Been Going Through Big Price Swings

Bitcoin’s price has been fluctuating wildly in recent times, dropping below the crucial support level of $77,000 before bouncing back to trade above the psychological barrier of $83,000.

These moves can be attributed to a combination of factors, including regulatory issues, persistent economic uncertainty, and large market liquidations that have triggered significant volatility in the crypto market.

However, the main event this week is the upcoming Federal Open Market Committee (FOMC) meeting, which could play a pivotal role in shaping Bitcoin’s price.

What To Expect From The FED Meeting

Scheduled for 19:00 ET on March 19, the meeting will provide insights into the Federal Reserve’s stance on interest rates for February. Current expectations suggest that the FED will keep interest rates unchanged, maintaining the benchmark rate at 4.25% to 4.5%, just as it did in January.

FED Chair Jerome Powell and other officials have hinted at a cautious approach to rate adjustments, especially given the ongoing economic uncertainties. Key concerns include potential inflation risks and the impact of President Donald Trump’s trade policies.

If the FED confirms that rates will stay the same, it could signal a stable economic outlook, which may drive investor confidence in riskier assets like Bitcoin.

Bitcoin Price: Bullish Or Bearish?

If the FED decides to hold rates steady, analysts at TradingView predict that a bullish wave could hit the market, pushing Bitcoin toward its next resistance level of $95,000.

Meanwhile, CryptoQuant analyst Darkfost has noted that Bitcoin’s open interest has reached $33 billion, showing that a large amount of leverage is in play.

This means investors are making big bets on Bitcoin’s next move. A sharp move in the opposite direction could trigger liquidations and increase volatility in the market.

On the other hand, crypto analyst Benjamin Cowen has warned that recent political uncertainty, such as the impeachment trial of President Trump, has triggered liquidations, creating short-term price drops.

And if Bitcoin falls below its 2024 highs of around $70,000, it could repeat a past cycle seen in 2017, where Bitcoin retested the previous year’s highs before dropping further.