TLDR:
- Bitcoin is holding steady around $83,000 as the Federal Reserve’s two-day policy meeting takes place
- Markets expect the Fed to maintain current interest rates in the 4.25%-4.50% range
- Spot Bitcoin ETFs recently broke a month-long streak of outflows with $275 million in net inflows
- Minnesota has joined 22 other U.S. states proposing laws to establish Bitcoin reserves
- Japanese company Metaplanet purchased another 150 Bitcoin, bringing their holdings to 3,200 BTC
Bitcoin is holding steady around the $83,000 mark as investors await the outcome of the Federal Reserve’s policy meeting. The world’s largest cryptocurrency traded at $83,006.50 as the Fed’s two-day meeting began on Tuesday.
The token experienced minimal price movement in recent weeks despite market turbulence. This relative stability comes after Bitcoin lost 1.5% in the previous trading session, briefly dipping below $82,000.
Market participants are closely watching the Federal Reserve’s upcoming rate decision. Analysts widely expect the central bank to maintain current interest rates in the 4.25%-4.50% range, which was established after a 25 basis point cut in December 2024.
Federal Reserve likely to remain hawkish
The Federal Reserve is likely to maintain its hawkish stance amid sticky inflation data. Recent tariff announcements from President Donald Trump have added to economic uncertainty, fueling recession fears in some quarters.
Bitcoin’s price action ahead of this Fed meeting breaks from historical patterns. Unlike past meetings where traders typically reduced leverage and risk exposure, Bitcoin’s open interest has remained relatively stable despite a $12 billion open interest shakeout earlier this month.
This unusual pattern may indicate that traders are less concerned about the Fed’s decision. The CME Group’s FedWatch tool now shows a 99% probability that the Fed will keep rates unchanged, suggesting market participants are prepared for a neutral outcome.
Institutional investors have shown renewed interest in Bitcoin. Spot Bitcoin ETFs broke a month-long streak of outflows on March 17, registering $275 million in net inflows before the FOMC meeting.
Investors hoping for a dovish stance
This shift in investor sentiment could indicate several possibilities. Some analysts suggest institutional investors may be expecting a more dovish Fed stance regarding future rate cuts, while others see it as strategic positioning to hedge against market uncertainty.
The cryptocurrency market has cooled since its earlier rally. Initial enthusiasm stemming from expectations of friendlier crypto regulations under Trump’s administration has somewhat faded in recent months.
Any indications of economic slowdown due to trade tensions could prompt the Fed to adjust its policy stance. Such changes would impact liquidity and investor sentiment in the cryptocurrency space.
On the legislative front, momentum continues to build for Bitcoin adoption. Minnesota has joined an increasing list of U.S. states exploring Bitcoin investments, with State Senator Jeremy Miller presenting the Minnesota Bitcoin Act.
The proposed legislation would allow the state to invest in Bitcoin and other cryptocurrencies. It would also permit public workers to integrate cryptocurrency into retirement plans and allow citizens to pay state taxes using Bitcoin.
Currently, 23 U.S. states have proposed laws to establish Bitcoin reserves. These initiatives reflect growing institutional interest in cryptocurrency as a treasury asset.
Metaplanet continues to accumulate
In corporate news, Japanese Bitcoin treasury company Metaplanet continued its accumulation strategy. The firm purchased another 150 Bitcoin valued at approximately $12.6 million, bringing its total holdings to 3,200 BTC worth about $261.8 million.
This acquisition makes Metaplanet the 11th-largest corporate holder of Bitcoin and the largest in Asia. The company aims to acquire 21,000 BTC by 2026, a strategy that has already helped drive a 4,800% increase in its stock price.
The Federal Reserve’s announcement is scheduled for Wednesday at 2:30 pm ET. Regardless of the outcome, market analysts expect the decision to trigger price movements in the cryptocurrency market.
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