FOMC Meeting Update: US Fed Keeps Interest Rate Unchanged At 4.25 To 4.5%

In line with expectations, the US Federal Reserve has kept interest rates unchanged between 4.25% and 4.5% following the conclusion of the March FOMC meeting. Amid this development, market experts predict the US Fed will still ease its monetary policies this year.

US Fed Keeps Rates Unchanged Following FOMC Meeting

In a press release, the US Federal Reserve announced that the FOMC has decided to keep interest rates unchanged following the two-day meeting held on March 18 and 19. This decision is in line with expectations. As CoinGape reported, there was a 98% chance the Fed would continue with a 4.25% to 4.5% interest rate, per CME data.

While this development is typically bearish for the crypto market, the Fed also announced following the FOMC meeting that it would slow balance sheet runoff starting from April 1, a move that could usher in quantitative easing (QE) from the US Central Bank.

This is bullish for Bitcoin and other crypto assets as more capital could flow into their respective ecosystems. LSEG estimates also show that US interest rate futures price in 56 basis points in cuts this year after the Fed held rates steady.

However, the US Fed warned that the uncertainty around the economic outlook has increased. Four Fed officials expect that there won’t be any rate cuts in 2025, which is bearish for the crypto market.

For now, there is much uncertainty about whether the US Fed is hawkish or dovish. As such, market participants would be looking to Fed Chair Jerome Powell’s speech to get an idea of what to expect from the US Central Bank moving forward.

What Next For The Bitcoin Price

The Bitcoin price surged to as high as $86,000 following the FOMC meeting. Market participants seem to be taking the recent developments as bullish, despite the US Fed keeping rates unchanged.

Crypto analyst Titan of Crypto revealed that a bullish pattern was forming for Bitcoin. He added that a right-angled descending broadening wedge is printing on BTC’s daily chart.

The analyst raised the “insane price target” the flagship crypto could reach if this breakout happens. His accompanying chart showed that BTC could reach as high as $107,000 if this price breakout occurs.