The cryptocurrency market is closely watching the Federal Open Market Committee (FOMC) meeting today, which is expected to conclude with an important interest rate decision. Investors are eagerly anticipating the U.S. Federal Reserve’s (Fed) choice regarding interest rates. The Fed’s announcement and the subsequent press conference by Chairman Jerome Powell are expected to significantly influence the crypto market.
March 19 Fed Interest Rate Decision: Expectations and Possible Effects on Cryptocurrencies
Currently, interest rates in the U.S. range between 4.25% and 4.5%. It is highly likely that the Fed will decide to keep rates unchanged during today’s FOMC meeting. Fed officials and Chairman Powell are adopting a cautious stance due to sticky inflation, global economic uncertainties, and potential surprises from Donald Trump’s possible re-election, leading to a prevailing downward trend in the cryptocurrency market.
As known, a high-interest environment drives investors towards safer havens, thereby reducing demand for high-risk assets like cryptocurrencies. High rates are particularly pushing investors towards secure options like bonds, which negatively impacts the prices of Bitcoin (BTC) 
$94,429 and altcoins due to limited or negative liquidity flow.
Given the Fed’s current posture, the likelihood of a rate cut is quite low. Therefore, expectations for rates to remain unchanged mean Powell’s statements during the press conference will be crucial for global and cryptocurrency markets. A dovish statement from Powell could lead to increased liquidity in the crypto market, as investors might shift their appetite from safer assets to riskier ones like cryptocurrencies, potentially driving prices up. Conversely, a hawkish tone could lead to sharp declines in Bitcoin and altcoins.
When Will the Fed Interest Rate Decision Be Announced?
The Fed’s interest rate decision will be announced today at 21:00 Turkish time. Along with the decision, projections for interest rates for the first quarter and long-term estimates will also be shared with the public.
Powell’s press conference is expected to start at 21:30 and last until 22:30.
The largest cryptocurrency, Bitcoin, has been trading within a tight range of $80,000 to $85,000 recently, indicating the market is waiting for the Fed’s interest rate decision. Altcoins follow a similar pattern, with total market capitalization hovering around $2.70 trillion, while the Crypto Fear and Greed Index shows investor sentiment still sits in the fear zone (32).
As the time for the Fed’s announcement approaches and during Powell’s press conference, increased volatility in the cryptocurrency market is expected. Experts are advising a pause in trading until the market’s reaction to the interest rate decision becomes clear.
