Bitcoin (BTC) Price Surges 3.6% Following Federal Reserve's Decision to Keep Interest Rates Unchanged

During Wednesday's trading session, the Bitcoin price surged 3.6% following the Federal Reserve's decision to keep the interest rate unchanged. The market reacted positively to this announcement with BTC

The U.S. Federal Reserve decided on Wednesday, March 19, 2025, to leave interest rates unchanged, keeping the federal funds rate in the range of 4.25% to 4.50%.

Federal Reserve Chairman Jerome Powell stated that while inflation remains a concern, there are no immediate plans to change the rate. He pointed out that the economy is expected to grow more slowly than previously thought, with the latest growth estimate being 1.7% instead of the earlier forecast of 2%. Powell also highlighted the ongoing risk of inflation as U.S. tariffs might delay efforts to reduce price pressures.

The decision to hold rates at the current level came as no surprise to the market, and analysts are expecting two rate cuts in 2025 due to persistent inflation and slower-than-anticipated economic growth.

Following the Fed’s announcement, cryptocurrency prices are also showing signs of change, with altcoins, in particular, searching for suitable support levels to form a bottom.

As the U.S. Federal Reserve decided to keep interest rates unchanged on Wednesday, March 19, 2025, at the current range of 4.25% to 4.50%, the cryptocurrency market responded with a surge in Bitcoin's price.

During Wednesday’s trading session, the Bitcoin price surged 3.6% following the Federal Reserve’s decision to keep the interest rate. The market reacted positively to this announcement with BTC teasing a bullish breakout of $85,000 and breaking the week-long slumber.

The daily chart analysis shows this new recovery could push the price beyond the boundary of the current correction trend, offering buyers an opportunity to accumulate.

The U.S. Federal Reserve decided on Wednesday, March 19, 2025, to leave interest rates unchanged, keeping the federal funds rate in the range of 4.25% to 4.50%.

While announcing the decision, Federal Reserve Chairman Jerome Powell acknowledged that inflation persists and is expected to remain above the Fed's 2% goal this year. However, he added that there are no immediate plans to change the rate.

"We will adjust monetary policy if needed to achieve our goals," Powell said during the press conference following the meeting of the Federal Open Market Committee (FOMC).

The central bank's statement noted that the latest economic projections show slower growth than previously anticipated, with a new growth estimate of 1.7% in 2025, compared to the earlier forecast of 2%.

"The projections also show inflation remaining elevated this year and then declining to 2% in 2026," the statement added.

The Fed's decision to hold rates at the current level came as no surprise to the market, and analysts at ING expect two rate cuts in 2025 due to persistent inflation and slower-than-anticipated economic growth.

"We expect the Fed to keep rates unchanged at today's meeting and to begin cutting rates in the second half of the year," ING economists said in a note on Wednesday.

Following the Fed’s decision, the crypto market witnessed a bullish turnaround, with altcoins, in particular, showing signs of change as they seek suitable support levels for bottom formation.

The cryptocurrency market is also keeping an eye on the upcoming meeting of the World Bank's executive directors, where they will vote on a request from Argentina for a new program that could provide the country with as much as $8 billion in funding.

The market is largely expecting the vote to pass, which could further impact crypto prices.

In the last two weeks, the Bitcoin price has seen a bullish reversal from $76,600 to $86,500, which accounts for a 13% surge. This recovery in the daily chart reverses a bull cycle within the formation of a falling wedge pattern.

As the price trades above the bottom support at $76,600, each reversal from the lower boundary bolstered buyers with renewed recovery to challenge overhead resistance. Thus, the BTC price could surge another 4% to challenge the downsloping trendline at $90,000.

A potential breakout with daily candle closing will signal the end of prevailing correction and set 20% upswing to reach new all-time high.

However, if the sellers continued to defend the wedge pattern resistance, the current correction will extend till April 2025.