Crypto Market Rollercoaster: Will Bitcoin Break $90K or Just Break Our Hearts? 😅

Ah, the crypto market, that whimsical creature, has decided to dance a merry jig after the Federal Reserve, in a fit of benevolence, chose to keep interest rates unchanged between 4.25% and 4.50%. The FOMC, in its infinite wisdom, has also hinted at two rate cuts in 2025, which, let’s be honest, sounds like a promise made by a politician during an election year. With this news, the crypto market cap soared like a kite in a storm, rising over 3% to a staggering $2.8 trillion. 🎈

Bitcoin (BTC), that ever-dramatic protagonist, faced a tempest of selling pressure on Tuesday, only to rise from the ashes like a phoenix, climbing from a low of $81,197 to a high of $87,427, before settling at a respectable $85,720. A 3% increase during the ongoing session—who knew cryptocurrencies could be so… lively?

Ethereum (ETH), not to be outdone, decided to join the party, reclaiming the all-important $2,000 level with a flourish. Up over 4%, it now trades at $2,017. Ripple (XRP) also decided to join the festivities, rising over 6% to $2.44. Solana (SOL) is up over 6% and trading at $133, while Dogecoin (DOGE) is up 3% at $0.174. Meanwhile, Cardano (ADA), Chainlink (LINK), Toncoin (TON), Stellar (XLM), Hedera (HBAR), and Litecoin (LTC) all registered substantial increases. But alas, Polkadot (DOT) decided to be the party pooper, declining over 1%. 🎉

Federal Reserve Holds Interest Rates Steady

The FOMC, in a moment of clarity, decided to keep interest rates steady, but not without a hint of future reductions. With tariffs looming like a dark cloud, they maintained the key borrowing rate, which has been as stable as a cat on a hot tin roof since December. Markets, ever the optimists, had already priced in a zero chance of any movement at the two-day policy meeting.

Despite the uncertainty created by President Trump’s tariffs and a policy of tax breaks and deregulations, officials predict a half-percentage point of rate cuts in 2025. Markets rallied on this news, with the Dow Jones Industrial Average rising more than 400 points. However, Federal Reserve Chair Jerome Powell, in a moment of seriousness, warned that the central bank would keep interest rates high if market conditions required it.

“If the economy remains strong, and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly, or inflation was to fall more quickly than anticipated, we can ease policy accordingly.”

The FOMC also noted the higher level of uncertainty in its post-meeting statement, which is a fancy way of saying, “We have no idea what’s going on.”

“Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate.”

Powell also mentioned a moderation in consumer spending, hinting that tariffs could put upward pressure on prices. The FOMC downgraded its economic outlook, expecting the economy to grow at just 1.7% this year, down from the previous prediction of 2.1%. Meanwhile, core prices are expected to grow at a rate of 2.8%, up from the previous prediction. The Fed also announced a scaling back of its quantitative tightening program, allowing only $5 billion in maturing proceeds from Treasurys to roll off each month, significantly lower than the previous $25 billion.

Crypto Market Maintains Recovery

The crypto market, ever the resilient creature, embarked on a steady recovery after the Federal Reserve left interest rates unchanged, rallying to a $2.9 trillion market cap before registering a marginal decline to $2.72 trillion. Major cryptocurrencies, including BTC, rallied. The flagship cryptocurrency soared above $85,000 for the first time since March 4, while ETH, XRP, and SOL also reported impressive rallies. Another reason for the sharp jump in digital asset prices is the news of President Donald Trump’s expected presence at the Digital Asset Summit (DAS). Trump is expected to share his crypto policy, which is sure to be a spectacle.

“Look for cryptocurrency markets to closely mirror the S&P 500 throughout the indefinite future, though individual altcoins can continue to see increased unpredictability and volatility.”

Crypto Fear And Greed Index Rises

The Crypto Fear and Greed Index, that trusty barometer of investor sentiment, has jumped 17 points in a day to reach 49. This leap to a neutral sentiment indicates that investors are neither overly fearful nor excessively greedy—quite the balancing act! The improvement in sentiment came after markets reacted positively to the Federal Reserve’s decision to keep interest rates steady. However, Powell warned that inflation remains high and that Trump’s tariff policies could prolong the struggle against rising prices.

But fear not! The Fed has predicted two rate cuts in 2025, with Powell stating it is difficult to assess the full impact of tariffs on inflation.

Expectations Building For Solana ETF

Expectations are rising for the launch of Solana ETFs, set for Thursday, March 20. Meanwhile, spot Bitcoin ETFs have reversed weeks of outflows to register weekly inflows of $483 million, according to data from SoSoValue. The upcoming Solana ETF launch and the renewed demand for Bitcoin ETFs indicate improved market sentiment and growing institutional interest in digital assets.

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) surged past $86,000, reaching a 10-day high, surging to an intraday high of $87,038 on Wednesday as investors reacted to signs of looser financial conditions from the Federal Reserve. The Federal Reserve stated it would slow down, reducing its $6.8 trillion balance sheet, capping the runoff of Treasury Securities at $5 billion per month from the previous $25 billion. The move is expected to prevent market disruptions amid debt ceiling tensions.

Improving financial conditions have fueled risk appetite, with the US Dollar posting its largest three-day decline since 2015. According to Jamie Coutts, Chief Crypto Analyst at Real Vision, the shifts could set the stage for a significant Bitcoin rally in the next 90 days.

“Historically, these signals have often preceded large Bitcoin moves. Now, with the PBoC ramping up liquidity measures, the market may be underestimating how quickly Bitcoin could surge—potentially hitting new all-time highs before Q2 is out—despite ongoing concerns around Trump tariffs and a possible recession.”

BTC finally surged past the 200-day SMA and $85,000 as markets picked up following the FOMC meeting. The flagship cryptocurrency had plunged to an intraday low of $76,642 on Tuesday as selling pressure intensified. However, it recovered from this level to register an increase of 5.50% to reclaim $80,000 and settle at $82,943. Buyers retained control on Wednesday as the price rose almost 1% despite facing substantial selling pressure. Buyers lost momentum on Thursday as BTC dropped over 3% and settled at $81,136. Bullish sentiment returned on Friday as markets rebounded. As a result, BTC surged past the 200-day SMA, rising to an intraday high of $85,363 before settling at $84,002, ultimately registering an increase of 3.53%.

Buyers retained control on Saturday as BTC registered a marginal increase and settled at $84,398. Despite the positive sentiment, BTC was back in the red on Sunday, ending the week on a bearish note after dropping over 2%, slipping below the 200-day SMA and settling at $82,611. BTC started the current week positively, rising almost 2% and settling at $84,016. Bearish sentiment intensified on Tuesday as BTC fell to a low of $81,187. The price rebounded from this level to reclaim $82,000 and settle at $82,725, ultimately registering a drop of 1.54%. Markets recovered on Wednesday following the FOMC meeting, with the Fed leaving interest rates unchanged. As a result, BTC surged over 5%, moving past the 20 and 200-day SMAs and $85,000 to settle at $86,875. The current session sees BTC down over 1% and trading at $85,812. Sellers will look to retain control and push BTC below $85,000 and the moving averages. On the other hand, buyers will look to sustain momentum and push the price towards $90,000.

Ethereum (ETH) Price Analysis

Ethereum (ETH) surged over 6% on Wednesday, breaking out of its trading range after the FOMC meeting. The Fed announced it was keeping interest rates unchanged but hinted at two rate cuts in 2025, sending a wave of positivity over the markets. As a result, ETH rallied on Wednesday, surging past $2,000. ETH has been trading in a narrow range since last Monday, oscillating between $1,800 and $2,000.

ETH had slumped to a low of $1,759 on Tuesday, sparking concerns about a deeper correction. However, it rallied from this level to reclaim $1,900 and settle at $1,923 after an increase of over 3%. Buyers lost momentum on Wednesday as ETH registered a marginal drop and settled at $1,909. The price continued to drop on Thursday, slipping below $1,900 after a drop of 2.30% and settling at $1,865. ETH rebounded on Friday, rising 2.54% to reclaim $1,900 and settle at $1,912. Buyers retained control on Saturday, as ETH rose 1.35% and settled at $1,938.

However, it was back in the red on Sunday, dropping almost 3% and settling at $1,888. ETH started the current week on a bullish note, rising over 2% and settling at $1,928. The price continued to push higher on Tuesday, registering a marginal increase and moving to $1,933. ETH rallied on Wednesday as markets turned bullish after the FOMC meeting. As a result, ETH rallied, breaking out of its trading range to surge past $2,000 and settle at $2,050 after an increase of over 6%. The current session sees ETH down over 2% and trading at $2,013 as sellers look to drive the price below $2,000. However, the MACD has flipped to bullish, indicating buyers have the upper hand.

Solana (SOL) Price Analysis

Solana (SOL) is struggling to move past the 20-day SMA despite Wednesday’s rally, with the price in the red during the ongoing session. SOL fell to an intraday low of $112 on Tuesday as selling pressure intensified. However, the price rebounded from this level to register an increase of almost 6% to reclaim $120 and settle at $125. Buyers retained control on Wednesday as SOL rose over 1% and settled at $126. Despite the positive sentiment, SOL was back in the red on Thursday, dropping 2.53% and settling at $123. SOL rebounded on Friday as markets rallied. As a result, the price registered an increase of over 8% to move past $130 and settle at $133.

Buyers retained control on Saturday as SOL rose almost 2% and moved to $135. However, it was back in the red on Sunday after failing to move past the 20-day SMA, dropping over 7%, slipping below $130, and settling at $126. SOL started the current week positively, rising 1.58% and settling at $128. Despite the positive start, SOL dropped on Tuesday, falling over 2% and settling at $125. Bullish sentiment intensified on Wednesday as markets rallied. As a result, SOL surged over 8% and settled at $135. However, buyers have lost momentum during the ongoing session, with the price marginally down and trading at $132. Sellers will look to retain control and drive SOL below $130. On the other hand, buyers will look to push SOL past $140.

Arbitrum (ARB) Price Analysis

Arbitrum (ARB) plunged to a low of $0.294 on Tuesday thanks to growing selling pressure. However, it rebounded from this level, rising over 5% and settling at $0.337. ARB continued to push higher on Wednesday, rising over 3% and settling at $0.348. Selling pressure returned on Thursday as ARB fell 1.43% and settled at $0.343. Buyers returned to the market on Friday as the price rose 4.51% and settled at $0.359. ARB continued to push higher on Saturday, increasing 1.45% and settling at $0.364.

ARB was back in the red on Sunday, dropping over 4% to end the weekend on a bearish note at $0.348. The current week started on a bullish note as ARB surged over 6% on Monday and settled at $0.369. ARB faced considerable selling pressure on Tuesday as it dropped to an intraday low of $0.351. However, it rebounded from this level to register a marginal increase and settle at $0.371. Buyers retained control on Wednesday as ARB surged past the 20-day SMA to settle at $0.385 after an increase of almost 4%. The current session sees ARB down 2.49% and trading at $0.375.

Internet Computer (ICP) Price Analysis

Internet Computer (ICP) registered a sharp decline last Monday, dropping almost 6% to $5.09. The price continued to drop on Tuesday, falling to an intraday low of $4.85 as selling pressure intensified. However, it rebounded from this level to register an increase of 6.48% to reclaim $5 and settle at $5.42. The price continued to push higher on Wednesday despite facing volatility, rising over 1% and settling at $5.49. ICP registered a marginal drop on Thursday as sellers gained the upper hand after a bout of volatility. Buyers returned to the market on Friday as the price rose almost 4% to $5.66. ICP continued to push higher on Saturday, increasing by 3% and settling at $5.83.

ICP fell back in the red on Sunday despite the positive sentiment, dropping over 4% and settling at $5.57. ICP started the current week positively, surging to an intraday high of $6.10. However, it could not stay at this level and fell below $6 to settle at $5.90, ultimately registering an increase of almost 6%. ICP fell to a low of $5.61 on Tuesday as selling pressure intensified. The price recovered from this level and settled at $5.83, ultimately registering a drop of 1.19%. Bullish sentiment returned on Wednesday as ICP registered an increase of almost 3%, going past the 20-day SMA and settling at $5.99. However, the price is back in the red during the ongoing session, down almost 2% and trading at $5.89.

NEAR Protocol (NEAR) Price Analysis

Near Protocol’s (NEAR) price action was relatively muted until Wednesday when it surged almost 8% to move past the 20-day SMA. NEAR started the previous week on a bearish note and plunged to a low of $2.14 on Tuesday as selling pressure intensified. However, it rebounded from this level, surging by 7% and settling at $2.44, but not before hitting an intraday high of $2.56. NEAR continued to push higher on Wednesday, increasing almost 5% despite considerable selling pressure. The price registered a marginal increase on Thursday, then rose 1.36% on Friday to settle at $2.60.

Price action remained positive on Saturday as NEAR rose 1.36% and settled at $2.64. However, selling pressure returned on Sunday. As a result, NEAR dropped almost 5% and settled at $2.51, ending the weekend on a bearish note. NEAR started the current week positively, rising nearly 5% and settling at $2.64. However, it was back in the red on Tuesday, dropping 1.96% and settling at $2.58. Bullish sentiment intensified on Wednesday as markets rallied. As a result, NEAR surged nearly 8%, going past the 20-day SMA and settling at $2.79. However, NEAR is back in the red during the current session, down almost 2% and trading at $2.74.

Injective (INJ) Price Analysis

Injective (INJ) started the previous week with a drop of over 7%. The price fell to $8.17 on Tuesday as selling pressure intensified. However, it rebounded from this level to register an increase of 3.54% to reclaim $9 and settle at $9.10. Bullish sentiment persisted on Wednesday as INJ rose over 6% and settled at $9.67. INJ was back in the red on Thursday, dropping over 4% and settling at $9.26. Buyers returned to the market on Friday as INJ surged over 8% to reach an intraday high of $10.30 before falling and settling at $9.95. Buyers retained control on Saturday as INJ rose 2.49% to move past $10 and settle at $10.20.

INJ fell back in the red on Sunday despite the positive momentum. As a result, the price dropped over 6%, slipping below $10 and settling at $9.59. The price recovered on Monday, registering an increase of just over 4% and settling at $9.97. INJ fell to an intraday low of $9.30 on Tuesday as selling pressure returned. It recovered from this level to settle at $9.67, ultimately registering a decline of $9.67. INJ recovered on Wednesday as markets turned bullish, rising almost 6% to $10.24. The current session sees INJ down over 4% as sellers look to push the price towards $9. Buyers will look to regain control and push INJ back above $10.

2025-03-20 17:27