Bitcoin It continues to trade above $28,000 as the markets brace for today’s highly anticipated Federal Reserve decision. On Wednesday, BTC price hit a multi-month high of $28,900 as the broader market awaited the March interest rate decision from the US Federal Reserve.
Crypto Analyst Shares BTC Outlook Ahead of FOMC
According to Van de Poppe, the key price level for bitcoin to track remains the $28,700 level.
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As variously highlighted over the past few days, the Fed’s interest rate decision is coming on the back of turmoil in the economy. banking industry, Market experts suggest the Fed is likely to go for a 25-basis point hike, or possibly zero.
Here’s what crypto analyst Michael van de Poppe Said earlier today.
“My projection for today is that I would expect the Fed to continue hiking. Most likely it would be 25 bps, next 50 bps and as a third option could be only 0 bps. This should eventually lead to a correction in the markets. Will be, but you might want to see 25 bps instead of 0 bps.
What is the possible scenario for BTC then? As per the market sentiment, bitcoin could continue to grind upwards with a price hike of 25 bps, or a pump if the Fed suggests things are bad for the market. With BTC potentially reflecting widespread selling pressure, a surprising 50 bps tank market will likely take place.
What are the experts saying about the FOMC and the market outlook?
Fundstrat Global Advisors Managing Partner and Head of Research Tom Lee They say The onus is on the Fed, along with keeping an eye on recent market events.
“Today is FOMC decision day. The market’s focus is +25bp or pause. The more important question is whether the Fed wants to ‘tighten’ financial conditions or not?
According to Lee, the bond market is weak and a decline in the S&P 500 may very well be.creating more panic among depositors,
Eric Rosen, former chairman of the Boston Federal Reserve, told CNBC’s “Squawk Box” today that the Fed halving was likely. However, his language could make it clear that the central bank could go back to raising rates if inflation remains high with no resolution to the current turmoil.
However, given the surprise 50 basis points rate hike by the European Central Bank last week, expectations are heavily tilted towards 25 bps. Noah Blackstein, Senior Portfolio Manager at Dynamic Funds ToAleD CNBC on Wednesday:
“I think the Fed will go for 25 basis points … but I really don’t think they should raise. You know recently I’ve heard about this topic – between financial stability and price stability. It’s some sort of economic settlement, but really, what the Fed has done is long overdue and clearly has credit problems. They could make a difficult situation worse.”