Skip to content

Bitcoin consolidates below $39k as investors await The Fed’s decision on interest rates

Bitcoin consolidates below $39k as investors await The Fed's decision on interest rates

On Monday, March 14, the European Union rejected a proposal that would have required Bitcoin (BTC), Ethereum (ETH), and other Proof-of-Work cryptocurrencies to follow more environmentally friendly practices.

Bitcoin’s price is trading below $39,000 on Tuesday, March 15, as investors await the results of the Federal Open Market Committee’s two-day meeting, which concludes on Wednesday.

For the previous week, the cryptocurrency has been stabilizing between the $37,000 to $42,000 region, according to CoinMarketCap data. 

The flagship digital currency is currently changing hands at $38,634, down 1.24% in the last 24 hours and 0.56% across the previous week, with a total market worth of $733 billion.

Bitcoin 7-day price chart. Source: CoinMarketCap

Interest rate hike

Federal Reserve Chairman Jerome Powell stated earlier this month that the central bank wants to increase its policy interest rate by a quarter-percentage point after the conclusion of its March meeting to battle inflation, which surged to a 40-year high in February.

Global geopolitical issues are causing prolonged economic uncertainty, according to DailyFX analyst Nicholas Cawley, who believes that Bitcoin’s subdued price movement may be ascribed to this.

“The Federal Reserve is expected to increase interest rates by 25 basis points on Wednesday and while this is seen as a negative for BTC, the markets have known about this hike for a few weeks now and have priced it in accordingly.” 

Crawley added:

“If Bitcoin can break above $39.6k with conviction then $42k becomes the next level of interest before a cluster of recent highs below $46k come into play. A break above here would turn the outlook for Bitcoin positive.” 

Likewise, the prominent crypto trading analyst shares a similar outlook; he considers that Bitcoin could also accelerate upwards with any move past $45,000. 

Poppe stated: “Fundamentals -> good steps. But, the liquidity sides are still the same. Sub $37K, and we accelerate. Above $45K and I think we accelerate for Bitcoin.”

Bitcoin price movement. Source: Michael van de Poppe

Finally, it’s worth mentioning that the CoinMarketCap crypto community believes that Bitcoin will rally to trade at $48,099 by March 31. The target is based on votes by 83,890 members as of March 11.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts