Bitcoin’s price fell sharply ahead of the Federal Reserve’s latest interest rate decision, dropping roughly $2,000 to under $72,500. Market consensus expects the Fed, led by Chair Jerome Powell, to hold rates steady amid global uncertainty. This meeting is the second-to-last before Powell’s term ends in mid-May.
Bitcoin experienced significant volatility hours before the U.S. Federal Reserve’s policy announcement. The cryptocurrency’s price plunged approximately $2,000, reaching a multi-day low below $72,500.
Experts widely anticipate no change to interest rates at this meeting. The ongoing Middle East conflict and rising global gas prices have increased economic uncertainty.
Economists at Morgan Stanley noted the key question for the Fed is handling oil price shocks. This sentiment was cited by NBC News.
UBS economists reaffirmed the expectation of no policy pivot. Investment strategist BeiChen Lin stated that hints about future rates from Chair Powell would be key.
U.S. President Trump continues to request rate cuts from Powell. His nominee, Kevin Warsh, is set to replace Powell when his term expires.
Bitcoin had been a top-performing asset since the war began on February 28. Its price had rallied from around $63,000 to $76,000 before the recent drop.
The asset has a history of volatile reactions to Powell’s speeches. Further price fluctuations are expected following the Fed’s decision.
