TLDR
- Bitcoin holds close to the $83,000 level as traders closely watch the Federal Reserve's decision on interest rates.
- Amid ongoing concerns about inflation, it is anticipated that the Federal Reserve will keep interest rates within the 4.25%-4.50% range.
- In a positive sign for institutional investments, spot Bitcoin ETFs have reversed their trend of outflows, recently garnering $275 million in new investments.
- A notable increase in significant Bitcoin transactions over $100,000 has been observed, rising from 6,332 to 9,552 within just four days.
- Minnesota has joined a group of 22 states pushing for legislation to create Bitcoin reserves at the state level.
While the Federal Reserve embarks on its two-day meeting, Bitcoin remains stable at around $83,000. The world's foremost cryptocurrency has shown minimal fluctuation as traders await cues from the central bank.
There's a broad expectation that the Fed will leave interest rates unchanged between 4.25%-4.50%. Nevertheless, market players are on the lookout for any statements addressing inflation and economic trajectories.
Early trading hours saw Bitcoin at $83,006.50. This follows a prior drop of 1.5% wherein the price dipped below the $82,000 threshold momentarily.
Throughout this month, Bitcoin's price has experienced little movement. Nonetheless, recent tariff announcements by President Donald Trump have sent ripples across broader financial markets.
Unlike earlier Federal Reserve meetings, Bitcoin traders appear to be maintaining their positions, indicating a potential confidence in a predictable outcome.
According to the CME Group’s FedWatch tool, there is a 99% likelihood that interest rates will stay the same, reflecting a strong consensus in the market.
On March 17, spot Bitcoin ETFs ended their streak of outflows, amassing $275 million in new investments, indicating a revival of interest among institutions.
A net cash inflow of roughly $218 million was reported by BlackRock’s IBIT on Tuesday, with the fund's assets now totaling around $46.79 billion.
Data from the blockchain reveals that large-scale investors are increasing their Bitcoin purchases, with transactions over $100,000 rising from 6,332 to about 9,552 in just four days.
This heightened interest among major investors could reflect expectations for economic stabilization. Analysts note that recent U.S.-led tariff conflicts have significantly been accounted for.
Amid Expanded Adoption by States and Institutions, Bitcoin Gains Ground
Minnesota joins a growing cadre of U.S. states contemplating cryptocurrency investments. State Senator Jeremy Miller has introduced an initiative termed the Minnesota Bitcoin Act, facilitating state investments. in Bitcoin.
Proposals also include allowing public employees to diversify their retirement portfolios with cryptocurrencies and enabling residents to pay state taxes using Bitcoin.
As of now, 23 states in the U.S. have put forward legislative measures to establish Bitcoin reserves, including a variety of 39 initiatives concerning governmental crypto investments.
The Japanese firm Metaplanet, active in the Bitcoin treasury space, recently acquired an additional 150 Bitcoin, valued at approximately $12.6 million. This extends their holdings to a total of 3,200 BTC, equivalent to roughly $261.8 million.
With this acquisition, Metaplanet becomes the 11th-largest corporate Bitcoin holder and the most substantial in Asia, aiming to amass 21,000 BTC by 2026. of Bitcoin Despite current market stability, some analysts foresee a potential price correction. Crypto analyst Xanrox points to what they consider a 'bear market signal,' suggesting Bitcoin could fall to $40,000 by 2026.
Ki Young Ju, CEO of CryptoQuant, shares a similar viewpoint, positing that the present bull cycle may soon end, ushering in 6-12 months of volatile price shifts.
The announcement from the Fed is set for Wednesday, March 19, at 2:30 pm ET, with market participants gearing up for possible price fluctuations, regardless of the outcome.
Maisie, an accomplished journalist in the spheres of Crypto and Finance, has contributed to platforms like Moneycheck.com and level-up-casino-app.com and serves as the Editor in Chief at Blockfresh.com.
